You are attempting to value a put option with an exercise price of $105 and one year to expiration. The underlying stock pays no dividends, its current price is $105, and you believe it has a 50% chance of increasing to $122 and a 50% chance of decreasing to $88. The risk-free rate of interest is 10%. Calculate the value of a put option with exercise price $105. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of a put option

You are attempting to value a call option with an exercise price of $108 and one year to expiration. The underlying stock pays no dividends, its current price is $108, and you believe it has a 50% chance of increasing to $136 and a 50% chance of decreasing to $80. The risk-free rate of interest is 10%. Calculate the call option's value using the two-state stock price model. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.

You are attempting to value a call option with an exercise price of $108 and one year to expiration. The underlying stock pays no dividends, its current price is $108, and you believe it has a 50% chance of increasing to $136 and a 50% chance of decreasing to $80. The risk-free rate of interest is 10%. Calculate the call option's value using the two-state stock price model. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. > Answer is complete but not entirely correct. Value of the call option $ 12.73 x

Use the Black-Scholes formula for the following stock: Time to expiration Standard deviation Exercise price Stock price Interest rate |||||||||| Value of a call option = = 6 months 56 % per year 55 = 54 6% Calculate the value of a call option. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "S" sign in your response.)