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The price of Cilantro, Inc., stock will be either $70 or $90 at the end...

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Finance

The price of Cilantro, Inc., stock will be either $70 or $90 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 6 percent.

a. Suppose the current price of the companys stock is $80. What is the value of the call option if the exercise price is $60 per share?
b. Suppose the current price of the companys stock is $80. What is the value of the call option if the exercise price is $75 per share?

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