(Answered) The price of mdd inc stock will be either 79 or 101 at the

Finance

The price of MDD, Inc., stock will be either $79 or $101 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 4 percent.

a. Suppose the current price of MDD stock is $90. What is the value of the call option if the exercise price is $75 per share? (Round your answer to 2 decimal places. (e.g., 32.16)) Call value $

b. Suppose the current price of MDD stock is $90. What is the value of the call option if the exercise price is $85 per share? (Round your answer to 2 decimal places. (e.g., 32.16)) Call value $

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