1. What is the value of a call option with a strike price of $0 and 6 months to expiration? Use the parameters of the example: S0 = $80.50, rF = 1.77%, and σ = 50%.
2. Price a European put option with a stock price of $80, a strike price of $75, 3 months to maturity, a 5% risk-free rate of return, and a standard deviation of return of 20% on the underlying stock.