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100 110 100 Sup= 120, S down=80 Exercise 3 Let the bond and stock prices A(O), A(1), S(O), S(1) be as above. Compute the price

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100 110 100 Sup= 120, S down=80 Exercise 3 Let the bond and stock prices A(O), A(1), S(O), S(1) be as above. Compute the price C(O) of a call option with exercise time 1 and a) strike price $90, b) strike price $710. 120 100 100 80 Exercise 4 Let the prices A(O), S(O), (i) be as above. Compute the price C(O) of a call option with strike price $100 and exercise time 1 if a) A(1) = 105 dollars, b) A(1) = 115 dollars. =

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