An investor is interested in purchasing a European call option on Altec, Inc., a non-dividend-paying common stock. The option has an exercise price of $15 and three months until expiration. Altecs stock is currently trading at $14 per share and the annual standard deviation of its continuously compounded returns is 0.28. The risk-free rate of interest is 5% per year.

Compute (i) the value of the call option, using the Black Scholes option pricing model; and (ii) the value of the put option based on your answer in part (i) and the put-call parity theorem. Please show formula work