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The common shares of Twitter, Incorporated ( TWTR ) recently traded on the NYSE for $ 1 0 1 per share. You have employee stock

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 2.8 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 Correct
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.

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