(b) You were asked for an opinion on the valuation technique applied by a junior colleague. He has applied a Monte Carlo technique for valuation of Asian option on non-dividend paying stock currently trading at 8500. The time to expiration of option is 14 months. The stock price paths are simulated by the proche given d5 udt+odW., where 0.019 and 1.75, WIs Brownian motion, and so = 490 Discuss your major concerns related to such approach for option valuation (2 marks) (b) You were asked for an opinion on the valuation technique applied by a junior colleague. He has applied a Monte Carlo technique for valuation of Asian option on non-dividend paying stock currently trading at 8500. The time to expiration of option is 14 months. The stock price paths are simulated by the proche given d5 udt+odW., where 0.019 and 1.75, WIs Brownian motion, and so = 490 Discuss your major concerns related to such approach for option valuation (2 marks)