4. (10 points) Today, a driver who is entering into a car lease agreement can buy the right to buy the car in 5 years for $20,000. The current value of the car is $50,000. The value of the car, S, is expected to follow the process dst = u dt + o dBt St where u = -0.3, o = 0.1, and (Bt)t>o is a (standard) Brownian motion. The market price of risk of the car is estimated to be -0.15. What is the value of this option today? Assume that the risk-free rate of all maturities is 3%. 4. (10 points) Today, a driver who is entering into a car lease agreement can buy the right to buy the car in 5 years for $20,000. The current value of the car is $50,000. The value of the car, S, is expected to follow the process dst = u dt + o dBt St where u = -0.3, o = 0.1, and (Bt)t>o is a (standard) Brownian motion. The market price of risk of the car is estimated to be -0.15. What is the value of this option today? Assume that the risk-free rate of all maturities is 3%