Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 201,500 jobs. The NFP conventional contract pays out $85 for every job created in excess of the exercise price.

a. What is the value of the option if job growth is 196,500? (Round your answer to the nearest dollar.)

Option value $

b. What is the value of the option if job growth is 211,000?