Assume that the asset price follows a GBM with drift r and volatility o. You are given the following information: S K o r 50.00 52.00 0.20 0.02 0.50 Your task is to use Monte Carlo simulation with N = 104 trails to address the following questions 1. What is the price of a European Call option with strike price K? (5 Points) 2. What is the price of an Asian call option with a strike price of K? (5 Points) 3. What is the price of a Knock-Out Barrier Option with exercise price of K and knock-out price of L = 48? (5 Points) 4. How does the Black-Scholes pricing formula compare with the three option prices? Confine your answer to a single paragraph. (5 Points) Assume that the asset price follows a GBM with drift r and volatility o. You are given the following information: S K o r 50.00 52.00 0.20 0.02 0.50 Your task is to use Monte Carlo simulation with N = 104 trails to address the following questions 1. What is the price of a European Call option with strike price K? (5 Points) 2. What is the price of an Asian call option with a strike price of K? (5 Points) 3. What is the price of a Knock-Out Barrier Option with exercise price of K and knock-out price of L = 48? (5 Points) 4. How does the Black-Scholes pricing formula compare with the three option prices? Confine your answer to a single paragraph. (5 Points)