The price of Cilantro, Incorporated, stock will be either $$70$ or $$85$ at the end of the year. Call options are available with one year to expiration. T$-$bills currently yield $5$ percent.

Suppose the current price of the company's stock is $$75.$ What is the value of the call option if the exercise price is $$55$ per share?

Suppose the exercise price is $$75$ in requirement $1.$ What is the value of the call option no