1.Current price of ABC shares is 266 dollars. A call option has an exercise price of 251dollars and are due to expire in 3 months time. The risk-free interest rate is 3% and ABC's share price volatility as measured by standard deviation is 20%. Assume 360 days per year.

a)Calculate the premium on the ABC call options.

b)Calculate the value of ABC put options with an exercise price of 251 dollars and 3 month expiry.