1. A call option on Futura Corporation stock currently trades for $4. The expiration date is February 18 of next year. The exercise price of the option is $45.a. If this is an American option on what dates can the option be exercised?b. If this is a European option on what dates can the option be exercised?c. Suppose the current price of Futura Corporation stock is $35. Is this option worthless?2. Mrs. Gerard sold 10 IBM put contracts and bought 5 IBM call contracts with the proceeds of the sales. Both options have the same exercise price of $80 and the same expiration date. Draw the payoff diagram of her zero-investment portfolio.