T-bills currently yield 4.3 percent. Stock in Nina Manufacturing is currently selling for $80 per share....

60.1K

Verified Solution

Question

Finance

T-bills currently yield 4.3 percent. Stock in Nina Manufacturingis currently selling for $80 per share. There is no possibilitythat the stock will be worth less than $73 per share in oneyear
a-1. What is the value of a call option with a $64 exerciseprice? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)
a-2.What is the intrinsic value? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)
b-1.What is the value of a call option with a $54 exerciseprice? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)
What is the intrinsic value? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)
c-1.What is the value of a put option with a $64 exercise price?(Leave no cells blank - be certain to enter "O" wherever required.Do not round intermediate calculations and round your answer to thenearest whole number, e.g., 32.)
c-2.What is the intrinsic value? (Leave no cells blank - becertain to enter "O" wherever required. Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)

Answer & Explanation Solved by verified expert

4.2 Ratings (832 Votes)

See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

T-bills currently yield 4.3 percent. Stock in Nina Manufacturingis currently selling for $80 per share. There is no possibilitythat the stock will be worth less than $73 per share in oneyeara-1. What is the value of a call option with a $64 exerciseprice? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)a-2.What is the intrinsic value? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)b-1.What is the value of a call option with a $54 exerciseprice? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)What is the intrinsic value? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)c-1.What is the value of a put option with a $64 exercise price?(Leave no cells blank - be certain to enter "O" wherever required.Do not round intermediate calculations and round your answer to thenearest whole number, e.g., 32.)c-2.What is the intrinsic value? (Leave no cells blank - becertain to enter "O" wherever required. Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)