\begin{tabular}{|l|l|} \hline Question 3 & \begin{tabular}{l} The value of a European call option is inversely related to the: \\ A. exercise price \\ B. time to expiration \\ C. volatility of the underlying \end{tabular} \\ \hline Your choice & \\ \hline Calculation & \\ Steps & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Question 4 & \begin{tabular}{l} XYZ is a biotech company. The founder believes they can sell the company for $50 \\ million in four years. They need $5 million in capital now, and the founder currently \\ holds 1 million shares. The discount rate is 50%. What is the stock price the VC should \\ pay for the investment? \\ A. 3.02 \\ B. 4.88 \\ C. 5.53 \end{tabular} \\ \hline Your choice & \\ \hline Calculation & \\ Steps & \\ \hline \end{tabular}