What is the value of a european call futures option where the futures price is 50, the strike price is 50, the risk-free rate is 5%, the volatility is 20% and the time to maturity is three months?

a. 49.38n(0.05)-49.38n(-0.05)
b. 50n(0.05)-50n(-0.05)
c. 49.38n(0.1)-49.38n(-0.1)
d. 50n(0.1)-49.38n(-0.1)

Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken