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The common shares of Twitter, Incorporated ( TWTR ) recently traded on the NYSE for $ 9 7 per share. You have employee stock options

The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $97 per share. You have employee stock options
to purchase 1,000 TWTR shares for $102 per share. The options expire in three years. Assume that the annualized volatility of TWTR
stock is 87 percent and that the interest rate is 26 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.
Value of your TWTR options
c. 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.
Value of the options
d. What is the estimated value of the options if their maturity is three years, but TWTR's volatility is 62 percent?
Note: Round your intermediate calculations to 2 decimal places and final answer to nearest whole dollar.
Value of the options
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