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5. Given 10 trials of risk-neutral stock prices and the 1-year risk free rate. begin{tabular}{l|l|l|l|} cline { 2 - 3 } 1 1-Year Risk-Free 2.00%

image text in transcribed 5. Given 10 trials of risk-neutral stock prices and the 1-year risk free rate. \begin{tabular}{l|l|l|l|} \cline { 2 - 3 } 1 1-Year Risk-Free 2.00% & 3.00% & 4.00% \\ \hline \end{tabular} a) What is the value of a derivative that pays St115 immediately (on the first occurrence only) if St>115 and 0 otherwise? b) What is the value of a derivative that is knocked out if St>120 or St100 b. Max{100S3100,0} if S3

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