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

Maturity Price 11/16/2018 Maturity Price 1/17/2020 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).