1. Find the payoff of the call option. 2. Show the payoff of this call option on a graph (x axis = stock price, y axis = call option). 3. How you explain the difference between the payoff and the option prices found when T=1?

SO rf d2 11 1% 1% 1% 0 25% 25% 25% 14 17 20 23 26 29 K 20 20 20 20 20 20 20 T 1 1 1 1 1 1 1 d1 W(01) W(d2) W(-d1) W(-d2) -2.226348 -2.476348003 0.01299544 0.006636706 0.9870046 0.9933633 -1.2616998 -1.511699776 0.103528419 0.065305128 0.8964716 0.9346949 -0.4850757 -0.735075718 0.313811318 0.231146691 0.6861887 0.7688533 0.165 -0.085 0.565528009 0.466130695 0.43447199 0.5338693 0.72404777 0.47404777 0.765481796 0.682267078 0.2345182 0.31773292 1.21445706 0.964457058 0.887713381 0.832591586 0.11228662 0.16740841 1.65125423 1.401254226 0.950656663 0.919430968 0.04934334 0.08056903 Call Option Price 0.01153644 0.156291244 0.757857548 2.080707831 4.096513149 6.594404673 9.363393676 1% 1% 1% 1% 25% 25% 25% 25% SO rf d2 11 1% 1% 1% 0 25% 25% 25% 14 17 20 23 26 29 K 20 20 20 20 20 20 20 T 1 1 1 1 1 1 1 d1 W(01) W(d2) W(-d1) W(-d2) -2.226348 -2.476348003 0.01299544 0.006636706 0.9870046 0.9933633 -1.2616998 -1.511699776 0.103528419 0.065305128 0.8964716 0.9346949 -0.4850757 -0.735075718 0.313811318 0.231146691 0.6861887 0.7688533 0.165 -0.085 0.565528009 0.466130695 0.43447199 0.5338693 0.72404777 0.47404777 0.765481796 0.682267078 0.2345182 0.31773292 1.21445706 0.964457058 0.887713381 0.832591586 0.11228662 0.16740841 1.65125423 1.401254226 0.950656663 0.919430968 0.04934334 0.08056903 Call Option Price 0.01153644 0.156291244 0.757857548 2.080707831 4.096513149 6.594404673 9.363393676 1% 1% 1% 1% 25% 25% 25% 25%