Consider an American put option on XAL stock with a strike price of ?$69 and one year to expiration. Assume XAL pays no? dividends, XAL is currently trading for ?$13 per? share, and the? one-year interest rate is 9 %. If it is optimal to exercise this option? early:
a. What is the price of a? one-year American put option on XAL stock with a strike price of ?$77 per? share?
b. What is the maximum price of a? one-year American call option on XAL stock with a strike price of ?$69 per? share?