With the notation used in this chapter:

(a) What is (

(b) Show that SN

(d) = Ked), where S in the stock price at time and In[5/K)+(y+0/2XT-1)

(c) Calculate id,/as and id/as.

(d) Show that when it follows that T-1 (S/K)+-2XT-0 T-1 =SN(d)-KeN(ds) where c is the price of a call option on a non-dividend paying stock.

(e) Show that e/is-N4) (Show that satisfies the Black Scholes differential equation. Show that satisfies the boundary condition for a European call option, Le, that cmas(5-K. 0) as 17.