Google's (GOOG) stock is currently trading at $20. Assume the following: The call option on Google has expiration date six months in the future. The strike price on the call option is $19. The estimate of standard deviation on Google's stock is 45%. The current risk-free rate is 1%. The Call was computed to be $3.04. The cumulative standard normal distribution function was computed as follows. N/d1) = 0.0.6316 N(D2) = 0.5071 Required: a) Compute the price of the put using the Put-Call Parity formula? What is Put-Call Parity? Discuss. b) Verizon Communications Inc. offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless- enabled connected devices, such as smart watches. Assume you have been given the following information on Verizon Communications. Current stock price is $30 Exercise price is $35 Time to expiration is 3 months Risk-free rate is 1% Variance is 0.50 Required: a) Using the Black-Scholes option pricing model, calculate the price of a call option on Verizon Communications. b) Using the Black-Scholes option pricing model, calculate the price of a put option on Verizon Communications. c) As for the call option, is the option in the money, at the money, or out of the money? Discuss. As for the call option, how would you interpret N (d1)? Discuss. e) Assume that the stock price increased to $40, how would this impact N (01)? Discuss