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2. Consider an option on a stock when the stock price is $30, the exercise price is $29, the risk-free interest rate is 5% per

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2. Consider an option on a stock when the stock price is $30, the exercise price is $29, the risk-free interest rate is 5% per annum, the volatility is 25% per annum, and the time to maturity is 4 months. What is the price of the option if it is a European call or put based on the Black-Scholes-Merton model? How many shares are to be held to hedge the option

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