Assume that the asset value of a company follows a Black-Scholes model. Let a maturity be 1, the initial asset value be 100, volatility of the asset be 0.3, and liability value of the company at the maturity be 100. Also, assume that the interest rate is 10% = 0.1.

1.Calculate the initial equity value of the company.

2.Calculate the probability of the companys default at the maturity.