The price of MDD, Inc., stock will be either $67 or $89 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 4 percent.

a.	Suppose the current price of MDD stock is $78. What is the value of the call option if the exercise price is $63 per share? (Round your answer to 2 decimal places. (e.g., 32.16))

Call value

$

b.	Suppose the current price of MDD stock is $78. What is the value of the call option if the exercise price is $73 per share? (Round your answer to 2 decimal places. (e.g., 32.16))

Call value

$