Helena Birch is an investment analyst for a small brokerage firm. She is examining the methods used to value option contracts on the stock of Abeam Inc. and Bayfield Enterprise which are publicly traded stocks listed on the Lakeland City Stock Exchange.

From her research, she noted that the share of Abeam Inc. closed at a price of $50.00 per share yesterday and she is considering the purchase of a 90-day call option with an exercise price of $60. Upon careful review of the company's history, the standard deviation of returns on shares of Abeam Inc. was estimated at 0.50 per year.

For Bayfield Enterprises, Helena obtained the following information on the put and call options on the company's stock which are set to expire in 3 months: