2. A stock is selling today for $80. The stock has an annual volatility of 30 percent, and the annual nominal risk-free interest rate is 3.50 percent. a. Calculate the fair price for a 16 month European call option with an exercise price of $84. b. Calculate how much the current stock price would need to change for the purchaser of the call option to break even in 16 months. c. Calculate the level of volatility that would make the $84 call option sell for $18. (Use Goal Seek or Solver)