Consider the CEO of a U.S. financial Institution Zeus Inc who is trying to tailor the needs of a corporate client. Calculate the values of the Call and Put Option given the following economic parameters?

1. S=44, X=42, t= 0.25, r=6%, and the variance 2 =0.36.

2. Show me that Options is a zero - sum game in well drawn diagrams.

3. These particular options are traded in the NASDAQ at $3. Are these options overvalued or undervalued?