Consider the following data:

Price of stock now $=P=1,765$

Standard deviation of continuously compounded annual returns $==0\mathrm{.}25784$

Years to maturity $=t=0\mathrm{.}5$

Interest rate per annum $=r_f=2\mathrm{.}0\%$ for six months $(4\%$ per annum$)$

Beta of the stock $=1\mathrm{.}63$

Risk$-$free loan beta $=0$

$($A$-3$ and B$-2$ are correct$)$

a$-1.$ Calculate the risk $($beta$)$ of a six$-$month call option with an exercise price of $$1,765.$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

a$-2.$ Calculate the risk $($beta$)$ of a six$-$month call option with an exercise price of $$1,715.$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

a$-3.$ Does the risk rise or fall as the exercise price is reduced?

b$-1.$ Now calculate the risk of a one$-$year call with an exercise price of $$1,765.$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

b$-2.$ Does the risk rise or fall as the maturity of the option lengthens?