1. SASOL is currently priced at R50. You want to determine the price of the stock in 1 year. You believe there is a 30% chance that the stock will increase by a factor 1.75 or decrease by a factor 0.89. A call option on SASOL with an exercise price of R80 that expires in one year. Calculate the following: a) the price of the stock in the event of an increase b) the price of the stock in the event of a decrease c) the value of the call option in the up state d) the value of the call option in the down state 2. Use the Black-Scholes formula to find the value of a call option of the following stock: Time to maturity =6 months Standard deviation = 50% per year Exercise price Stock price Interest rate = 50 = 50 = 10% p.a.