2. The price of Evil Corp. stock will be either $60 or $80 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 4 percent. a. Suppose the current price of the stock is $72. What is the value of the call option if the exercise price is $58 per share? b. Suppose the exercise price is $75 in part (a). What is the value of the call option now? 3. What are the prices of a call option and a put option with the following characteristics? Stock price = $76 Exercise price = 80 Risk-free rate=4% per year, compounded continuously Maturity = 5 months Standard deviation = 53% per year