5. A put option expires in the money; that is, ST < X. What is the payoff at expiration of the corresponding call option; that is, a call written on the same stock and with the same maturity and exercise price as the put option?

7. Compute the premium of a European call option with the following parameter values: S = $220, X = $200, r = 5% p.a., = 30%, T = 6 months. You may use the normal table, and use the closest value in the table to the number that you are looking for. In other words, you need not interpolate.

8. Compute the premium of a European put option with the following parameter values: S = $28, X = $30,

r = 6% p.a., = 30%, T = 9 months. You may use the normal table to find the closest value to the number that you are looking for. In other words, you need not interpolate. Hint: I suggest you first find the premium of the corresponding call option.