Question: Question 4. Option premium (2 points) a) Calculate the put and call option values and fair premium for an option. $3.00 Probability Actual Price Put

Question 4. Option premium (2 points) a) Calculate the put and

Question 4. Option premium (2 points) a) Calculate the put and call option values and fair premium for an option. $3.00 Probability Actual Price Put Value Call Value Put Strike Call Strike $3.00 0.2 0.2 0.2 $2.5 $3.0 $3.5 $4.0 $4.5 0.2 0.2 Fair Premiums b) Explain why one of the option premiums is higher than the other

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