Question: Answer Completley & Show work Question 4 (3 points) a) Calculate the put and call option values and fair premiums with put strike of $7

Answer Completley & Show work Question 4 (3 points) a) Calculate

Answer Completley & Show work

Question 4 (3 points) a) Calculate the put and call option values and fair premiums with put strike of $7 and call strike of $7. Show all of your work. Put Option Value Call Option Value 0.1 Wheat Price ($/bushel) $8.50 $7.75 $7.00 $6.00 0.2 0.3 0.4 Fair Premiums b) If the strike price for the call option increases to $8/bushel would the call premium be higher or lower? Explain (There is no need for calculations)

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