Question
You are given the following information concerning options on a particular stock:Stock price=$76 Exercise price=$75 Risk-free rate=6% per year, compounded continuously Maturity=6 months Standard deviation=31%
You are given the following information concerning options on a particular stock:Stock price=$76
Exercise price=$75
Risk-free rate=6% per year, compounded continuously
Maturity=6 months
Standard deviation=31% per year
a.What is the intrinsic value of each option?(Leave no cells blank - be certain to enter "0" wherever required.)
ValueCall option$Put option$
b.What is the time value of each option?(Round your answers to 2 decimal places. (e.g., 32.16))
ValueCall option$Put option$
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
