You are given the following information on two European call options written on stock XYZ at a strike of 175.

	Maturity 11/16/2018 price	Maturity 01/17/2020 price	XYZ price
4/11/2018	12.50	20.10	178.10
4/12/2018	9.75	17.50	172.55

Assume an annual rate of interest of 2% and an annual dividend rate of 1%. Both rates are continuously compounded.

a)Compute the implied volatilities of both options on both dates. (You will compute four implied volatilities in total).

b)Create a P&L explanation for these two options. A P&L explanation is an explanation of the change in the option value between the two days. The change in value should be expressed as a function of delta, gamma, vega and time decay.

c)Discuss the main differences between the P&L explanations of the two options.

Please show all work and label the answer