T-bills currently yield 3.7 percent. Stock in Deadwood Manufacturing is currently selling for $74 per...

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T-bills currently yield 3.7 percent. Stock in Deadwood Manufacturing is currently selling for $74 per share. There is no possibility that the stock will be worth less than $67 per share in one year.

a-1

What is the value of a call option with a $55 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 $43 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 $55 exercise price?

Put option value $

c-2 What is the intrinsic value?

Intrinsic value $

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