Question:
T-bills currently yield 5.7 percent. Stock in Nina Manufacturing is currently selling for $56 per share. There is no possibility that the stock will be worth less than $49 per share in one year. (Round answers to 2 decimal places. If the answer is zero, input as "0".)
a. The value of a call option with an exercise price of $42 is $________. The intrinsic value is $14.
b. The value of a call option with an exercise price of $30 is $_________ . The intrinsic value is $26.
c. The value of a put option with an exercise price of $42 is $_________. The intrinsic value is $0.