Question: Suppose a share of stock sells for $60. The risk-free rate is 6 percent, and the stock price in one year will be either $66 or $76. (Leave no cells blank - be certain to enter "0" wherever required.)
a. What is the value of a call option with an exercise price of $66?
Call option value $
b. Calculate the minimum return on the stock required to get the option in the money. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Minimum stock return %