Question: Answer questions 24 and 25 based upon the following information: The current price of an asset is $2 million. Next year it may be worth

Answer questions 24 and 25 based upon the following information: The current price of an asset is $2 million. Next year it may be worth $2.5 million, if the economy does well, or it may be worth only $1.6 million, if the economy does badly. The risk- free rate is 5%. Q24. alue of a one-year call option on this asset, with a strike price of $2 million, is closest to a. $154,000. b. $265,000. c. $381,000. d. $396,000. Q25 The value of a one-year put option on this asset, with a strike price of $2.5 million, is closest to a. $154,000. b. $265,000. c. $381,000. d. $396,000

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