1) A stock is currently selling for $39. Over the next two periods, the stock will move up by a factor of 1.29 or down by a factor of .53 each period. A call option with a strike price of $50 is available. If the risk-free rate of interest is 3.2 percent per period, what is the value of the call option? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2) A stock is currently priced at $45 and will move up by a factor of 1.23 or down by a factor of .61 each period over each of the next two periods. The risk-free rate of interest is 3 percent. What is the value of a put option with a strike price of $54? (Do not round intermediate calculations. Round your answer to 2 decimal places.)