The price of Time Squared Corp. stock will be either $65 or $85 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 Time Squared stock is $70. The value of the call option is $ if the exercise price is $60 per share.

b.	Suppose the exercise price is $80 in part (a). The value of the call option is now $