The price of MDD, Inc., stock will be either $64 or $86 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 6 percent.

a.Suppose the current price of MDD stock is $75. What is the value of the call option if the exercise price is $60 per share?(Round your answer to 2 decimal places. (e.g., 32.16))

Call value$b.Suppose the current price of MDD stock is $75. What is the value of the call option if the exercise price is $70 per share?(Round your answer to 2 decimal places. (e.g., 32.16))

Call value$