1. Concord's stock is currently selling for $40.00 a share but is expected to decrease to either $36 or $44 a share over the next year. The risk-free rate is 3 percent. What is the current value of a 1-year call option with an exercise price of $40?

$0.98

$1.73

$2.52

$0.56

$3.10

2. The 1-year $45 options on Logan stock are priced at $2.51 for the call and $1.58 for the put. The annual risk-free rate is 2.0 percent. What is the per share price of the underlying stock?

$45.05

$38.27

$44.03

$50.18

$54.72