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The bws corporation stock is selling at 50 a share

The BWS Corporation stock is selling at $50 a share today.

a. Calculate the value of a BWS call option if its exercise price is $40 and it expires today.

b. What can you say about the value of a BWS call option if its exercise price is $40 and it expires in six months?

c. Calculate the value of a BWS call option if its exercise price is $60 and it expires today.

d. What can you say about the value of a BWS call option if its exercise price is $60 and it expires in six months?

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Finance Basics: The bws corporation stock is selling at 50 a share

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