Buffelhead's stock price is $235 and could halve or double in each six-month period (equivalent to a standard deviation of 95%). A one-year call option on Buffelhead has an exercise price of $180. The interest rate is 18% a year.

Assuming that the option is American and that at the end of the first six months the company pays a dividend of $24. (Thus the price at the end of the year is either double or half the ex-dividend price in month 6.)

a.	Calculate the value of the Buffelhead call option. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Option value

$

b.	Calculate the value of the Buffelhead call option assuming that the options were European. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Option value

$