Suppose a share of stock sells for $74. The risk-free rate is 4 percent, and the stock price in one year will be either $80 or $90. (Leave no cells blank - be certain to enter "0" wherever required.)

a.	What is the value of a call option with an exercise price of $80?

Call option value

$

b.	Calculate the minimum return on the stock required to get the option in the money. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Minimum stock return

%