6. A call option on Dragonstone has a strike price of $517.7mil. The stock is currenity $520. In one year there are two possible outcomes $616 or $440. The risk free rate is 5.59 % per year What is the percentage increase in the up situation? Answer in % round to 2 decimals. OPTIONS: A. 7.69% B. 118.46% C. 107.69% D.18.46%

7. What is the risk neutral probability of the up movement of the investment in the above problem? Answer in %, round to 2 decimals.

A.61.97% B. 38.03% C.70.00% D.61.97%

8. What is the value of the call today?

A. 93.1 B.-17.57 C.57.69 D.98.3

9. Use the put call parity condition to find the value of a put with the same strike price and maturity?

A. 27.98 B.55.39 C.98.3 D. 42.3

10.Value a put on Dragonstone if the strike price is equal to the current price of the stock and all else lup, down, rate) is the same. Use the risk neutral method and remember that for a put Exercise value=MaxStock price Exercise price,

A. 52.61 B.78 C. 38.46 D. 28.81