The volatility of a dividend-paying stock whose price is $88, is 25%. The continuous compounded risk-free rate is 6% per annum for all maturities. The dividend yield is 1.5%.

Using EXCEL functions and applying the Black Scholes model, compute

i. The value of a 4-month European call options with a strike (exercise) price of $90. Comment on the option value obtained.

ii. The value of a 4-month European put options with a strike (exercise) price of $90. Comment on the option value obtained.