T-bills currently yield 3.7 percent. Stock in Nina Manufacturing is currently se

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T-bills currently yield 3.7 percent. Stock in Nina Manufacturing is currently selling for $56 per share. There is no possibility that the stock will be worth less than $50 per share in one year. a-1 What is the value of a call option with a $45 exercise price? (Round the final answer to 2 decimal places.) a-2 What is the intrinsic value? Intrinsic value b-1 What is the value of a call option with a $35 exercise price? (Round the final answer to 2 decimal places.) Call option value b-2 What is the intrinsic value? Intrinsic value c-1 What is the value of a put option with a $45 exercise price? (Do not leave any empty spaces; input a 0 wherever it is required.) Put option value c-2 What is the intrinsic value? (Do not leave any empty spaces; input a 0 wherever it is required.) Intrinsic value

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a) Particulars Formulas Computation Answers 1 Call option value Stock price - PV of exercise price =56-45/(1+3.7%) 12.61 2 Intrinsic value Stock price - Exercise price =56-45 11 b) 1 Call option value Stock price - PV of exercise price =56-35/(1+3.7%) 22.25 2 Intrinsic value Stock price - Exercise price =56-35 21 c) 1 Put option value Option will not be excercised 0 2 Intrinsic value Option will not be excercised 0

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