(2.3) The current prices of European calls with T maturity are shown in [F2023 Midterm.xlsx]. Please calculate the prices of Arrow securities for S%=1,2,,50 and present these fifty Arrow prices in a table. Also, plot these prices against S% in a bar graph. (Hint: What is the call price with K=0 ? What about K=50 ? You may need these call prices. It shouldn't take more than a few seconds to figure out these two call prices.) (2.4) Using what you just learned from (2.3), you can now price any derivative with payoffs contingent on S% ! Let's give it a shot: a) What is the price of a security that pays off one dollar if S%=17, three dollars if S%=40, and zero otherwise? (Hint: Replicate it with Arrow securities.) b) What is the price of a put option with strike 30 ? c) What is the price of a risk-free zero-coupon bond that pays one dollar at T? What is the continuously compounded risk-free interest rate in APR in this economy? (2.3) The current prices of European calls with T maturity are shown in [F2023 Midterm.xlsx]. Please calculate the prices of Arrow securities for S%=1,2,,50 and present these fifty Arrow prices in a table. Also, plot these prices against S% in a bar graph. (Hint: What is the call price with K=0 ? What about K=50 ? You may need these call prices. It shouldn't take more than a few seconds to figure out these two call prices.) (2.4) Using what you just learned from (2.3), you can now price any derivative with payoffs contingent on S% ! Let's give it a shot: a) What is the price of a security that pays off one dollar if S%=17, three dollars if S%=40, and zero otherwise? (Hint: Replicate it with Arrow securities.) b) What is the price of a put option with strike 30 ? c) What is the price of a risk-free zero-coupon bond that pays one dollar at T? What is the continuously compounded risk-free interest rate in APR in this economy