Homework 7 1. What is the value of the following call option according to the Black Scholes Option Pricing Model? What is the value of the put options? Stock Price $35.63 Strike Price -$35.00 Time to Expiration 6 Months -0.5 years. Risk-Free Rate-5.0%. Stock Return Standard Deviation 0.65. 2. Draw the payoff picture at expiration for a long position in a call option that has a premium of $2.25 and a strike price of $40. 3. 4. Draw the payoffpicture for a short position in the call option given in Problem 2., Draw the payoff picture at expiration for a long position in a put option that has a premium of $1.25 and a strike price of $50. Draw the payoff picture for a short position in the put option given in Problem 4