Consider the following European options which currently trade on Dog Corp shares: Type Call Call Put Put Underlying Asset 1 Dog Corp share $100.00 1 year $6.77 1 Dog Corp share $80.00 1 Dog Corp share $100.00 Strike Maturity Current Value 1 Dog Corp share $80.00 2 years $11.20 2 years 1 year ? $22.25 (a) If the risk-free interest rate is 10% per annum for all maturities and Dog Corp is not expected to pay any dividends over the next three years, what is the current value of the 2 year European call option ? . (b) A friend says to you ... "The writer of the one year European put option does not want the option to have a positive intrinsic value at maturity" What do you think