What is the value of a call option with an exercise price


Suppose a share of stock sells for $59. The risk-free rate is 7 percent, and the stock price in one year will be either $65 or $75. (Leave no cells blank - be certain to enter "0" wherever required.)

What is the value of a call option with an exercise price of $65?

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.)

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Financial Management: What is the value of a call option with an exercise price
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