Help needed. I need a breakdown of the process of solving the question. The following information is given about options on the stock of a certain company: S0 = $80, X =$70, r =10% per year (continuously compounded), T = 9 months, = 0.30 No dividends are expected. One option contract is for 100 shares of the stock. All notations are used in the same way as in the Black-Scholes-Merton Model. 1. What is the European call option price and European put option price, according to the Black-Scholes model? 2. What is the cost of buying a protective put? 3. What is the cost of writing a covered call? 4. What will be the payoff and profit of the protective put if the stock price on maturity is $60, $70, $76, $80, $86? 5. What will be the payoff and profit of the covered call if the stock price on maturity is $60, $70, $76, $80, $86?