Consider the CEO of a U.S. financial Institution Apollon Inc who is trying to tailor the needs of a corporate client. Calculate the values of the Call and Put Option given the following economic parameters?

1. S=65, X=64, t= 0.25, r=3%, and the variance 2 =0.49.

2. Show me that Options constitute a zero - sum game in well drawn diagrams.

3. These options are traded on the NASDAQ Stock Exchange Market at $3 dollars. Are these options overvalued or undervalued?

4. Employ now your previous estimated results and properly value the Greeks of the

with the following values respectively, Stock price=66, Time horizon=4/12 and Volatility= 0.8) of the European Call and Put Options,

Option(,,) respectively. Q2: (15 points)

Consider the following Spot Exchange Rate 1 Euro= 1.19 U.S. dollar. The

Consider the CEO of a U.S. financial Institution "Apollon Inc" who is trying to tailor the needs of a corporate client. Calculate the values of the Call and Put Option given the following economic parameters? 1. S=65,X=64,t=0.25,r=3%, and the variance 2=0.49. 2. Show me that Options constitute a zero - sum game in well drawn diagrams. 3. These options are traded on the NASDAQ Stock Exchange Market at \$3 dollars. Are these options overvalued or undervalued? 4. Employ now your previous estimated results and properly value the Greeks of the Option (,,) with the following values respectively, Stock price =66, Time horizon=4/12 and Volatility= 0.8) of the European Call and Put Options, respectively