You are attempting to value a call option with an exercise price of $55 and one year to expiration. The underlying stock pays no dividends, its current price is $55, and you believe it has a 50% chance of increasing to $85 and a 50% chance of decreasing to $25. The risk-free rate of interest is 6%. Based upon your assumptions, calculate your estimate of the the call option's value using the two-state stock price model. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Value of the call $

A put option on a stock with a current price of $41 has an exercise price of $43. The price of the corresponding call option is $3.45. According to put-call parity, if the effective annual risk-free rate of interest is 5% and there are three months until expiration, what should be the value of the put? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Value of the put $