Economics need in 30 mnts. i will highly appreciate 5) An investor takes a short position in an European call option on a stock with a strike price K1 = f8 and a maturity 7 = 1 year. The price of the underlying follows a geometric Brownian motion with So = $8, # = 20% and a volatility o = 40% per year. The risk-free interest rate is r = 4% per year. a) - Compute the Delta A, of the call option. How many stocks does the investor need to buy or sell in order to make their short position Delta neutral? - How would the situation change if the investor was in a short position in a put option instead of a call option? b) Determine whether we can make a Delta-neutral short position in a call op- tion (So = (8, / = 20%, o = 40% per year and r = 4% per year.) but with maturity 7* = 2 years instead of T = 1 year