8) You are attempting to value a call option with an exercise price of $60 and one year to expiration. The underlying stock pays no dividends, its current price is $60, and you believe it has a 50% chance of increasing to $95 and a 50% chance of decreasing to $25. The risk-free rate of interest is 7%. 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 $

11)

Use the Black-Scholes model to find the value for a European put option that has an exercise price of $62.00 and four months to expiration. The underlying stock is selling for $63.50 currently and pays an annual dividend of $1.77. The standard deviation of the stocks returns is 0.19 and risk-free interest rate is 4.5%. (Round intermediary calculations to 4 decimal places. Round your final answer to 2 decimal places.)

Put value $