If you could answer the following questions below it would be greatly appreciated. They are all based off the first question, please show your work.

1. The following information is given about options on the stock of a certain company. S0 = $341.00; X = $350.00; rc = 2.421%; T = 0.25; and volatility = 80.00%. No dividends are expected. Use this information to answer the following four questions. Assume 1 share per option contract. What value does the Black-Scholes-Merton option valuation model indicate for the call option? (Select the closest answer.)

   		32.22
   		45.15
   		51.22
   		54.11

2. Suppose you believe that the market call option is overpriced. As an arbitrageur, what strategy should you use to exploit the apparent errant valuation? (Select the closest answer and assume each call is for one share.)

		buy 560 shares, sell 1,000 calls
		sell 401 shares, sell 1,000 calls
		sell short 994 shares, buy 1,000 calls
		sell short 401 shares, buy 1,000 calls

3. Suppose you believe that the market call option is overpriced. As an arbitrageur, what strategy should you use to exploit the apparent errant valuation? (Select the closest answer and assume each call is for one share.)

		buy 560 shares, sell 1,000 calls
		sell 401 shares, sell 1,000 calls
		sell short 994 shares, buy 1,000 calls
		sell short 401 shares, buy 1,000 calls