Part $4.$

Calculate the value of a European call option using the Black$-$Scholes Model. The underlying

stock has a cash price of $$175,$ the long$-$term volatility measured as the stock's standard

deviation of returns is $5\mathrm{.}5\%,$ the call's strike price is $$180,$ and the risk$-$free interest rate is $5\%.$

The call option has a maturity of $85$ days.

Part $5.$

Describe the differences between employee stock options and European call options.