problem: Stock in the Nantucket Corporation is currently selling for USD 25 each share. In one year, the price will be either USD 20 or USD 30. T-bills with one year to maturity are paying ten percent. Determine the value of following options? [Show all work to receive full credit.]
[A] A put option with a strike price of $26?
[B] A call option with a strike price of $26?