Consider the situation where the Zeus stock price 3 months from the expiration of an option is $32, the exercise price of the option is $30, the risk-free rate is 6% per annum, and the volatility is 25% per annum.

a. Calculate the price of the European Call and European Put respectively. b. If the quoted price of the call is $2.75, can you argue that the call is undervalued? c. If the quoted price of the put is $1.98, can you argue that the put is overvalued? d. Show by the means of well-drawn diagrams that Option-Pricing is a ZERO-SUM game. Explain your answers analytically.