a) A company announces taking on a new project that will generate free cash flows of $6 million per year for 8 years. The company is entirely financed by 5 million shares of stock, with a cost of equity capital of 15%. Following the announcement, how should the the company's stock price move in an efficient market?

b) Consider a 6-month 60-strike European double-barrier call option on one share of a non-dividend-paying stock with a knock-in barrier at 70. If the option is knocked in, a knock-out barrier at 80 becomes effective. The underlying stock is trading at 50 per share. The current prices of several 6-month 60-strike European up-and-out calls are as follows.

Barrier = [60=0, 70 = 0.1294, 80=0.7583, 90=1.6616]

Calculate the double-barrier all premium?