The common shares of Twitter recently traded on the NYSE for$20.30. you have employee stock options to purchase 1000twtr shares for $18.70 per share. The options expire in three years. Assume that the annualized volatility of TWTR stock is 87.2 percent and that the interest rate is 3.4 percent.

b. Using an option pricing calculator, estimate the value of your Twtr options. Value of TWTR options__________

c. What is the estimated value of the options if their maturity is six months instead of 3 years? Value of options_____________

d. What is the estimated value of the options if their maturity is 3years but TWTR volatility is 61.8 percent Value of options_______________