The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $95 per share. You have employee stock options to purchase 1,000 TWTR shares for $100 per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is 85 percent and that the interest rate is 2.5 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. 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. Yosemite Corporation has an outstanding debt of $10.01 million on which it pays a 6 percent fixed interest rate annually. Yosemite just made its annual interest payment and has three years remaining until maturity. Yosemite believes that interest rates will fall over the next three years and that floating-rate debt will allow it to reduce its overall borrowing costs. A bank offers Yosemite a three-year interest rate swap with annual payments in which Yosemite will pay LIBOR, currently at 4 percent, and receive a 3.5 percent fixed rate on $10.01 million notional principal. Suppose that LIBOR turns out to be 3.4 percent in one year and 3.1 percent in two years. Including interest payments on Yosemite's outstanding debt and payments on the swap, what will be Yosemite's net interest payments for the next three years? Note: Negative values should be indicated by parentheses. The return an investor earns on a bond over a period of time is known as the holding period return, defined as interest income plus or minus the change in the bond's price, all divided by the beginning bond price. a. What is the holding period return on a bond with a par value of $1,000 and a coupon rate of 5.5 percent if its price at the beginning of the year was $1,010 and its price at the end was $920 ? Assume interest is paid annually. Note: Negative value should be indicated by parenthesis. Round your answer to 2 decimal places