Question: MUST use the attached Normal Distribution table. MUST use the attached Normal Distribution table. What is the price of a call option if the underlying

MUST use the attached Normal Distribution table.

MUST use the attached Normal Distribution table.

What is the price of a call option if the underlying stock price is $81, the strike price is $90, the underlying stock volatility is 50 percent, and the risk-free rate is 3 percent? Assume the option has 2 months to expiration.

  • Is this call option in the money or out of the money? Explain
  • Find the time value of this call option
  • Find the price of a put option with the same strike price and maturity
  • Is this put option in the money or out the money?
  • Find the time value of this option.

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