The price of Cilantro, Incorporated, stock will be either $81 or $103 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 7 percent.

a. Suppose the current price of the company's stock is $92. What is the value of the call option if the exercise price is $77 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. Suppose the current price of the company's stock is $92. What is the value of the call option if the exercise price is $87 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)