You are given the following information concerning options on a particular stock: Stock price = $76 Exercise price = $75 Risk-free rate = 6% per...

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Finance

You are given the following information concerning options on aparticular stock:

Stock price = $76
Exercise price = $75
Risk-free rate = 6% per year, compounded continuously
Maturity = 6 months
Standard deviation = 31% per year

a.
What is the intrinsic value of each option? (Leave nocells blank - be certain to enter "0" wherever required. Do notround intermediate calculations.)

Value
  Call option $
  Put option $

b.
What is the time value of each option? (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)

Value
  Call option $
  Put option $

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You are given the following information concerning options on aparticular stock: Stock price=$76Exercise price=$75Risk-free rate=6% per year, compounded continuouslyMaturity=6 monthsStandard deviation=31% per year a.What is the intrinsic value of each option? (Leave nocells blank - be certain to enter "0" wherever required. Do notround intermediate calculations.) Value Call option$ Put option$ b.What is the time value of each option? (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.) Value Call option$ Put option$

Stock price	=	$76
Exercise price	=	$75
Risk-free rate	=	6% per year, compounded continuously
Maturity	=	6 months
Standard deviation	=	31% per year