1. Suppose the stock price is $83.79, the continuously compounded expected return () is 13% and the volatility () is 51%. What is the expected stock price 2 years from today?

2. Suppose a stock provides, over an infinitesimally short period of time, an expected return of = 0.10 per annum and has a volatility of = .20 per annum. What is the expected value of the continuously compounded return during the course of one year?

3. Suppose the non-dividend paying stock price is $20, a European call option's strike price is $20, the risk-free rate is 6%, the volatility is 20% and the time to maturity is 3 months. What is the price of a European call option on the stock?

4. Suppose the non-dividend paying stock price is $20, a European put option's strike price is $20, the risk-free rate is 6%, the volatility is 20% and the time to maturity is 3 months. What is the price of a European put option on the stock?

5. Suppose the dividend paying stock price is $20, a European put option's strike price is $20, the risk-free rate is 6%, the volatility is 20% and the time to maturity is 3 months. The stock pays dividends of $0.25 every 3 months, with the first ex-dividend date 2 months from today. What is the price of a European put option on the stock?