The price of chive corp. stock will be either $86 or $119 at the end of the year. call options are available with one year to expiration. t-bills currently yield 5 percent. a. suppose the current price of the company's stock is $97. what is the value of the call option if the exercise price is $85 per share? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b. suppose the exercise price is $115 and the current price of the company's stock is $97. what is the value of the call option now? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
Answers: 1
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The price of chive corp. stock will be either $86 or $119 at the end of the year. call options are a...
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