Order the answer to: T-bills currently yield 4.3 percent. Stock in Octagon Manufacturing is

Academic Writing business-corporate-finance Order the answer to: T-bills currently yield 4.3 percent. Stock in Octagon Manufacturing is

business-corporate-finance

Order the answer to: T-bills currently yield 4.3 percent. Stock in Octagon Manufacturing is

Question T-bills currently yield 4.3 percent. Stock in Octagon Manufacturing is currently selling for $55 per share. There is no possibility that the stock will be worth less than $50 per share in one year.
a. What is the value of a call option with a $45 exercise price? What is the intrinsic value?
b. What is the value of a call option with a $35 exercise price? What is the intrinsic value?
c. What is the value of a put option with a $45 exercise price? What is the intrinsic value?
Subject business-corporate-finance
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