The price of Cilantro, Inc., stock will be either $70 or $90 at the end of the year. Call options are available with one year expiration. T-bills currently yield 6 percent.

a.) Suppose the current price of the company's stock is $80. What is the value of the call option if the expertise price is $60 per share?

B.)Suppose the current price of the company's stock is $80. What is the value of the call option if the expertise price is $75 per share?