Hello, I'm currently stucking with these questions, please help me with these. Thank you.

1. Suppose you pay 10 to buy a European (K = 100, t = 2) call option on a given security. Assuming a continuously compounded nominal annual interest rate of 6 percent, find the present value of your return from this investment if the price of the security at time 2 is

(a) 110;

(b) 98.

Suppose you pay 5 to buy a European (K = 100, t = 1/2) put option on a given security. Assuming a nominal annual interest rate of 6 percent, compounded monthly, find the present value of your return from this investment if

(a) S(1/2) = 102;

(b) S(1/2) = 98.