Question
T-bills currently yield 3.2 percent. Stock in Deadwood Manufacturing is currently selling for $69 per share....
T-bills currently yield 3.2 percent. Stock in Deadwood Manufacturing is currently selling for $69 per share. There is no possibility that the stock will be worth less than $62 per share in one year. a-1. What is the value of a call option with a $55 exercise price? (Round your answer to 2 decimal places, e.g., 32.16.)
a-2. What is the intrinsic value?
b-1. What is the value of a call option with a $40 exercise price? (Round your answer to 2 decimal places, e.g., 32.16.)
b-2. What is the intrinsic value?
c-1. What is the value of a put option with a $55 exercise price?
c-2. What is the intrinsic value?
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