Use the BlackScholes formula to find the value of the following call option.

Time to expiration 1 year.

Standard deviation 40% per year.

Exercise price $68.

Stock price $68.

Interest rate 4% (effective annual yield).

b. Now recalculate the value of this call option, but use the following parameter values. Each change should be considered independently.

Time to expiration 2 years.

Standard deviation 50% per year.

Exercise price $78.

Stock price $78.

Interest rate 6%.