2.6 Exercises 1. Suppose on the strike date, the price of a security will be $120 with probability %, $100 with probability a and $80 with probability %. (a) Use the crude, expected prot approach to gure the value of a call option with strike price 100. (b) Do the same for strike price 110. (c) Do the same for a put with the above two strike prices. ((1) What basic points become clear from this exercise