3. Assume that an underlying asset, S, follows the geometric Brownian motion, dS = uSdt +oSDW The value of a so-called power option at expiry follows, V(T,S)= 5" (a) Find the value of this option prior to expiry, V(5,1). (b) What is the value of the delta-hedged portfolio before expiry, following II, EV-AS, and explain whether this option is ever likely to be traded in practice? 3. Assume that an underlying asset, S, follows the geometric Brownian motion, dS = uSdt +oSDW The value of a so-called power option at expiry follows, V(T,S)= 5" (a) Find the value of this option prior to expiry, V(5,1). (b) What is the value of the delta-hedged portfolio before expiry, following II, EV-AS, and explain whether this option is ever likely to be traded in practice