Answer Happy

QUESTION 1
a. A European call option written on one share of
Ponce de Leon Foods, Inc. has the following
parameter
values: S = $113, X = $102, r = 5% p.a., = 21%
p.a., T = 10 months. Find the value of
d1, rounded to 4 decimals (e.g., 0.0712). NOTE: Use the
continuous time version of the equation (i.e., do NOT use the
book's version).
b. A European call option written on one share of
Crook & Crook, Inc. has the following
parameter values: S = $33, X = $36, r = 5% p.a., = 24% p.a., T = 10 months. Find the
value of d2, rounded to 4 decimals (e.g.,
0.0712). NOTE: Use the continuous time version of the
equation
c. A European call option written on one share
of Medident Corp. has the following parameter
values: S = $220, X = $200, r = 5% p.a., sigma = 20%
p.a., T = 6 months. Find the call option's
premium, rounded to 2 decimals (e.g., 3.24). Do NOT include the $
sign in your answer; write only the numerical value. NOTE: Use
the continuous time version of the Black-Scholes equation (i.e., do
NOT use the book's version).