Suppose the current of time squared stock is 70 what is the


The price of Time Squared Corp. stock will be either $65 or $85 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 5 percent.

Requirement 1: Suppose the current of Time Squared stock is $70. What is the value of the call option if the exercise price is $60 per share?

Requirement 2:

Suppose the exercise price is $75 in requirement 1. What is the value of the call option now?

Please write the formula that you used

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Financial Management: Suppose the current of time squared stock is 70 what is the
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