1. The current price of a bond is A(0) = 105 and it will mature at time T with face value A(T) = 110. The stock price is modeled by one step of the binomial tree model, with S(0) = 100, K = 13%, K = 3%. Your portfolio consists of 12 shares of stock and 9 bonds. (a) What is the initial value of your portfolio, V(0)? (b) What are the possible future values of your portfolio, V(T) (c) What are the rates of return on your portfolio, Ky? = 1. A European call option on Opaque LLC stock has the following specifications: Strike price $578, current stock price = $581, time to expiration = 4 years, annual continuously compounded interest rate = 0.12, dividend yield = 0. You can use a two-period binomial model to calculate the option's price. This is the binomial tree for the stock price movements: 581 ---981.89 -755.3 604.24 --464.8 -371.84 Find the price of one European call option on Opaque LLC stock.