9.Back to at 10 am, March 8, 2019. Suppose you are constructing another portfolio by buying a European Call on AAPL with strike 180 and selling the European Call on AAPL with strike 185.Without volatility skew, that is, volatility is always 10% for different strikes. Calculate your portfolio value V, at 10 am, March 8, 2019.

10.Suppose the market actually has a volatility skew:

(K)=min{1,18^K1}

Calculate your portfolio V' again, at 10 am, March 8, 2019. Think about why the portfolio value goes higher or lower after we assume the volatility skew in the market.

11.Now we assume the market has a volatility skew again, as in Question 10:

(K)=min{1,18^K1}

Note that here we should use the pricing formula based on chain rule:

C_Digital(K)=dC(K,(K))/dK=C(K,(K))/ K C(K,(K))/ (K)/K

Calculate your portfolio W' again, at 10 am, March 8, 2019.

Compare the difference of portfolio value W' - W with the previous one V' - V , think about the impact of volatility skew on different portfolios.

Please help me in question no. 9,10,11