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Use the table for the question(s) below

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Use the table for the question(s) below.

Security	Cash flow today	Cash flow in one year
A	0	100
B	100	0
C	100	100

 

a) If the risk-free rate of interest is 7.5%, then the value of security "A" is closest to:

A) $91.00

B) $92.50

C) $93.00

D) $100.00

 

b) If the risk-free rate of interest is 7.5%, then the value of security "B" is closest to:

A) $91.00

B) $92.50

C) $93.00

D) $100.00

 

c) If the value of security "C" is $180, then what must be the value of security "A"?

A) $80

B) $90

C) $100

D) Unable to determine without the risk-free rate.