Question: Problem 24-1 Calculating Option Values [LO2] T-bills currently yield 3.2 percent. Stock in Deadwood Manufacturing is currently selling for $69 per share. There is no

Problem 24-1 Calculating Option Values [LO2] T-bills currently yield 3.2 percent.

Problem 24-1 Calculating Option Values [LO2] T-bills currently yield 3.2 percent. Stock in Deadwood Manufacturing is currently selling for $69 per share. There is no possibility that the stock will be worth ess than $62 per share in one year a-1 What is the value of a call option with a $55 exercise price? (Round your answer to 2 decimal places, e.g., 32.16 a-2. What is the intrinsic value? b What is the value of a call option with a $40 exercise price? (Round your answer to 2 decimal places, e.g., 32.16.) b-2. What is the intrinsic value? c-1.What is the value of a put option with a $55 exercise price? c-2. What is the intrinsic value? a-1. Call option value a-2. Intrinsic value b-1. Call option value b-2. Intrinsic value c-1. Put option value C-2. Intrinsic value

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