1. The spot price is 100. The exercise price on a one year call is 102. The risk free rate is 4%. Find the price of the call if there is equal probability that stock price will grow to 110 or fall to 95.

2. The current price of a 5% coupon, 20 year treasury bond is 983.33. These bonds are earning 5.14%. The risk free rate is 2%. Find the futures price for a one year Tbond futures.