Assume there is no arbitrage, and that all rates are continuous and per annum.

Consider a European call option on IBM with strike price $25.05 and expiration in 18 months. Suppose IBM is trading at $29.65. The risk-free rate is 5.4% for all maturities. IBM will pay a dividend in 10 months of $0.79 per share.

(a) What is the range of values for the option?

Enter your solution as a coordinate pair accurate to two decimal places, e.g. (123.45, 678.90). Do not include dollar symbols ($) in your solution.

(b) Suppose this call option is trading on the Philadelphia Stock Exchange for $22.95. What is the price of the European put option with the same strike and expiration?