Olam Inc. grants 100 options today to its CEO as a part of an incentive plan to motivate executives to work harder in the future. These options will expire in two years and can be exercised only by the end of two years. The exercise price of these options is $60. The stock price today is $65 per share. The future stock price by the end of two years could be either $55 or $75 per share. T-bills currently yield 5 percent per year. a) infer the type of these options that the CEO receives based on the above descriptions. American or European, call or put. b) use the binomial model to calculate the total current value of CEOs options. c) use the risk-neutral approach to calculate the total current value of CEOs options.