The common shares of Twitter, Incorporated $($TWTR$)$ recently traded on the NYSE for $$101$ per share. You have employee stock options to purchase $1,000$ TWTR shares for $$106$ per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is $91$ percent and that the interest rate is $2\mathrm{.}8$ percent. $($Assume the options are European options that may only be exercised at the maturity date.$)$

Is this option a call or a put?

multiple choice

Call

Put

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.

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

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

What is the estimated value of the options if their maturity is three years, but TWTR$$s volatility is $66$ percent?

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