Question: Please answer 28 and 29 Question 28 (5 points) Please calculate the A. Exercise Value B. Time Value Given the following: Price of stock $55

Please answer 28 and 29

Question 28 (5 points) Please calculate the A. Exercise Value B. Time Value Given the following: Price of stock $55 Exercise Value Strike Price $47.50 Time Value Market value $10.50 Question 29 (6 points) We spent some time analyzing options in detail. Please take time to explain: 1. The difference between American Options and European Options. 2. The difference between a Put and a Call 3. The difference between the Black Scholes option pricing model and the Binomial Option pricing model. Paragraph B I UA, blom + ... 2 6

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