$1)$ Assume that the current price of FGX stock is $$35,$ that a $6$ month call option on the stock has a strike or exercise price of $$33\mathrm{.}00,$ the risk free rate is $4\%,$ and that you have calculated N$($d$1)$ as $\mathrm{.}65$ and N$($d$2)$ as $\mathrm{.}55.$ Use the Black$-$Scholes model to calculate the price of the option.

$2)$ Assume that the current price of FGX stock is $$33,$ that a $6$ month call option on the stock has a strike or exercise price of $$35\mathrm{.}00,$ the risk free rate is $4\%,$ and that you have calculated N$($d$1)$ as $\mathrm{.}65$ and N$($d$2)$ as $\mathrm{.}55.$ Use the Black$-$Scholes model to calculate the price of the option.

$3).$ Which of the following is essentially a type of insurance policy, but is regulated as a financial derivative?

A$)$ A futures contract

B$)$ An interest rate swap

C$)$ A put option

D$)$ A credit default swap

$125)$ Futures and currency swaps eliminate unfavorable price movements, whereas options can be used to eliminate the effect of both favorable and unfavorable price movements.

True or False?