Calculate the prices of 9 month European call and put options using the Black-Scholes pricing formula, given that the current market price of the underlying asset is $45.14, the risk-free continuously compounded interest rate is 5% per annum, and the volatility (standard deviation) of the price of the underlying asset is 7% per annum. You may find this table useful.

a)Calculate the option price for a call and a put if the strike price is $42.54. Give all answers in dollars and cents to the nearest cent.

Price of a call option = $

Price of a put option = $

b)Calculate the option price for a call and a put if the strike price is $41.40. Give all answers in dollars and cents to the nearest cent.

Price of a call option = $

Price of a put option = $

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