1. A stock is selling today for $100. The stock has an annual volatility of 54 percent and the annual risk-free interest rate is 9 percent.
   1. Calculate the fair price for a 27 month European put option with an exercise price of $92.
   2. Calculate how much the current stock price would need to change for the purchaser of the put option to break even in 27 months.
   3. Calculate the level of volatility that would make the $92 put option sell for $18. (Use Goal Seek or Solver).