Binomial Model:

The current price of a stock is $20. In 1 year, the price will be either $28 or $16. the annual risk-free rate is 4%. Find the price of a call option on the stock that has a strike price is of $23 and that expires in 1 year. (hint: use daily compounding.) Round your answer to the nearest cent. Assume 365-day year. Do not round your intermediate calculations. ?

Put-Call Parity:

The current price of a stock is $32, and the annual risk-free rate is 4%. A call option with a strike price of $30 and with 1 year until expiration has a current value of $4.50. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Do not round intermediate calculations. Round your answer to the nearest cent.

Black-Scholes Model:

Use the Black-Scholes Model to find the price for a call option with the following inputs: (1) Current stock price is $28. (2) Strike price is $35. (3) Time to expiration is 2 months. (4) Annualized risk-free rate is 6%. (5) Variance of stock return is 0.31. Round your answer to the nearest cent. In your calculations round normal distribution values to 4 decimal places.