PAPI stock currently has the price of $50. In the 1st quarter, the price either increases 40% or decreases 30%. In the 2nd quarter, the price either rises or falls by $50 if price increases in the first quarter and rises or falls by $60 if price decreases in the first quarter. The risk-free interest rate is 7% per quarter.

a) Using the replication portfolio approach, calculate the price of a 3-month put option that has an exercise price of $73.

b) Using the risk neutral probability approach, calculate the price of a 6-month call option that has an exercise price of $95.