The price of Alpha Corp. stock will be either $30 or $50 at the end of the year. Call options with an exercise price of $48 per share are available with one year to expiration. The discount rate is 5%. Suppose the current price of the company's stock is $36.

a. What is the value of the call option now?

b. Suppose put options for Alpha's stock with an exercise price of $48 per share are also available with one year to expiration. What is the value of the put option now?