T-bills currently yield 4.3 percent. Stock in Nina Manufacturing is currently selling for $80 per share....

T-bills currently yield 4.3 percent. Stock in Nina Manufacturing is currently selling for $80 per share. There is no possibility that the stock will be worth less than $73 per share in one year

a-1. What is the value of a call option with a $64 exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

a-2.What is the intrinsic value? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

b-1.What is the value of a call option with a $54 exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the intrinsic value? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

c-1.What is the value of a put option with a $64 exercise price? (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

c-2.What is the intrinsic value? (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Expert Solution

jeff jeffy answered 1 year ago

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