A 1-year European call and put options on a non-dividend paying stock has a strike price of 80. You are given: (i) The stocks price is currently 75. (ii) The stocks price will be either 85 or 65 at the end of the year. (iii) The continuously compounded risk-free rate is 4.5%.

(a) Determine the premium for the call.

(b) Determine the premium for the put.