1) Consider the Black-Scholes Model of Options Pricing, if S = 100, K=100, r = 7%, T = 0.5 years, N(d1) = 0.61 and N(d2) = 0.52 then: (i) Determine the price of the European Call Option. (ii) Determine the price of the European Put Option 2)

For a European call option contract, the current price of the underlying stock is $30, the risk-free rate of return is 10% and the strike price is set to the current no-arbitrage price of a 6-month forward contract on the underlying stock. If Nd1 and Nd2 (as defined under the Black-Scholes model) have values of 0.75 and 0.6 respectively, calculate the price of:

(i) The call option if the contract is priced under the Black-Scholes model and expires in 3 months.

(I) the equivalent put option for the contract in (i) above.