Calculate the call option value at the end of one period, Financial Management

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Calculate the call option value at the end of one period

Calculate the call option value at the end of one period for a European call option with the following terms:

The current price of the underlying asset is $80

The strike price is $75

The one period, risk free rate is 10%

The price of the asset can go up or down 10% at the end of one period.

What is the intrinsic value?

What is the time premium?

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Financial Management: Calculate the call option value at the end of one period

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Financial Management: Calculate the call option value at the end of one period

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