T-bills currently yield 5.0 percent. Stock in Deadwood Manufacturing is currently selling for $87 per share. There is no possibility that the stock will be worth less than $80 per share in one year.
a-1. What is the value of a call option with a $76 exercise price? (Round your answer to 2 decimal places, e.g., 32.16.)
Call option value $
a-2 What is the intrinsic value?
Intrinsic value $
b-1. What is the value of a call option with a $68 exercise price? (Round your answer to 2 decimal places, e.g., 32.16.)
Call option value $
b-2. What is the intrinsic value?
Intrinsic value $
c-1. What is the value of a put option with a $76 exercise price?
Put option value $
c-2. What is the intrinsic value?
Intrinsic value $