7. Problem 18.07 (Options) eBook Rachel is considering an investment in Yonan Communications, whose stock currently sells for $55. A put option on Yonan's stock, with an exercise price of $50, has a market value of $2.91. Meanwhile, a call option on the stock with the same exercise price and time until expiration has a market value of $9.04. The market believes that at the expiration of the options, the stock price will be $40 or $70 with equal probability. a. What is the premium associated with the put option? The call option? Round your answers to the nearest cent. The premium associated with the put option: $ The premium associated with the call option: S b. If Yonan's stock price increases to $70, what would be the return to an investor who bought a share of the stock? If the investor bought a call option on the stock? If the investor bought a put option on the stock? Round your answers to two decimal places. Investment Returns Own stock Buy call option Buy put option c. If Yonan's stock price decreases to $40, what would be the return to an investor who bought a share of the stock? If the investor bought a call option on the stock? If the investor bought a put option on the stock? Round your answers to two decimal places. Returns Investment Own stock Buy call option Buy put option