The common shares of Twitter, Incorporated $($TWTR$)$ recently traded on the NYSE for $$83$ per share. You have employee stock options to purchase $1,000$ TWTR shares for $$88$ per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is $73$ percent and that the interest rate is $3\mathrm{.}4$ percent. $($Assume the options are European options that may only be exercised at the maturity date.$)$

a$.$ Is this option a call or a put?

Call

Put

b$.$ Using an option pricing calculator such as the one at

erieri.com$/$blackscholes$,$ estimate the value of your TWTR options.

Note: Round your intermediate calculations to $2$ decimal places and final answer to nearest whole dollar.

$\backslash$table$[[$Value of your TWTR options $$$83,000$