Using the information on Harbin Manufacturing in Problem 19, answer the following: a. Using the risk-neutral probabilities,

Question:

Using the information on Harbin Manufacturing in Problem 19, answer the following:
a. Using the risk-neutral probabilities, what is the value of a one-year call option on Harbin stock with a of $25?
b. What is the of the call option?
c. Using the risk-neutral probabilities, what is the value of a one-year put option on Harbin stock with a of $25?
d. What is the of the put option?

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...