The price of Ervin Corp. stock will either be $66 or $88 at the end of the year. Call options are available with one year until expiration. T-bills currently yield 4.09 %. Suppose the current price of Ervin stock is $71.(Round answer to 2 decimal places, round intermediate calculations to 5 decimal places)

a) What is the value of the call option if the strike price is $75 per share?

b) What if the strike price is $55 per share?

a) Call Premium

b) Call Premium