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The price of Tara, Inc., stock will be either $79 or $101 at the end of the year. Call options are available with one year

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The price of Tara, Inc., stock will be either $79 or $101 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 the company's stock is $90. What is the value of the call option if the exercise price is $75 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call value b. Suppose the current price of the company's stock is $90. What is the value of the call option if the exercise price is $85 per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call value

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