a) A call option with a strike price of $68 on a stock selling at $82...

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Finance

  1. a) A call option with a strike price of $68 on a stock sellingat $82 costs $15.3. What are the call option’s intrinsic and timevalues?

  2. b) A put option on a stock with a current price of $37 has anexercise price of $39. The price of the corresponding call optionis $2.85. According to put-call parity, if the effective annualrisk-free rate of interest is 4% and there are three months untilexpiration, what should be the price of the put?

  3. c) A call option on Jupiter Motors stock with an exercise priceof $75 and one-year expiration is selling at $6. A put option onJupiter stock with an exercise price of $75 and one-year expirationis selling at $4.0. If the risk-free rate is 10% and Jupiter paysno dividends, what should the stock price be? show all steps andformula plz

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a A call option with a strike price of 68 on a stock selling at 82 costs 153 What are the call options intrinsic and time values Call value 153 Intrinsic value time value Intrinsic value S K 82    See Answer
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