The President of the "Water-Mellon Bank is offering you the Vice President position because he admires your knowledge on the determinants that affect the option prices (e.g., the Greeks of the Option). You are all excited from the offer and you try hard to impress him talking about long and short positions and synthetic securities respectively. The Treasurer of the bank however, does not Consider the CEO of a U.S. financial Institution "Zeus Inc" who is trying to tailor the needs of a corporate client. Calculate the values of the Call and Put Option given the following economic parameters? 1. S=44, X=42, t= 0.25, r=6%, and the variance o=0.36. 2. Show me that Options is a zero - sum game in well drawn diagrams. 3. These particular options are traded in the NASDAQ at $3. Are these options overvalued or undervalued