The common shares of Twitter incorporate (TWTR) recently traded on the NYSE for $67 per share. you have employee stock options to purchase 1000 TWTR shares for $72 per share. The option expires in three years. Assume that the annualized volatility of TWTR stock is 57 percent and the internet rate is 2.6 percent. (Assume the options are European option that may only exercised at the maturity date.)

Is this option a call or a put?

Using an option pricing calculator such as the one at erieri.co/blackscholes. Estimate the value of your TWTR options. ?

What is the estimated value of the option if their maturity is six months instead of three years?

What is the estimated value of the option if their maturity is three years, but TWTRs volatility is 32 percent?