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In the first 4 problems please assume the risk-free annual interest rate is 5.35% and the underlying stock has a current price of $41.75 and

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In the first 4 problems please assume the risk-free annual interest rate is 5.35% and the underlying stock has a current price of $41.75 and volatility of 0.34. Also assume there are 61 days until expiration. For each option you must compute its value using the Monte Carlo simulation method presented in Lecture 16 and plot a histogram of all the option prices obtained in the simulation. 1. Using the Monte Carlo methodology, compute the value of a European put option with a strike price of $45 using 10,000 trials. 2. Using the Monte Carlo methodology, compute the value of a European call option with a strike price of $45 using 10,000 trials. 3. Using the Monte Carlo methodology, compute the value of an exotic Asian-style geometric average price European put option with a strike price of $45 using 10,000 trials. 4. Using the Monte Carlo methodology, compute the value of an exotic Asian-style arithmetic average strike European put option using 10,000 trials. In the first 4 problems please assume the risk-free annual interest rate is 5.35% and the underlying stock has a current price of $41.75 and volatility of 0.34. Also assume there are 61 days until expiration. For each option you must compute its value using the Monte Carlo simulation method presented in Lecture 16 and plot a histogram of all the option prices obtained in the simulation. 1. Using the Monte Carlo methodology, compute the value of a European put option with a strike price of $45 using 10,000 trials. 2. Using the Monte Carlo methodology, compute the value of a European call option with a strike price of $45 using 10,000 trials. 3. Using the Monte Carlo methodology, compute the value of an exotic Asian-style geometric average price European put option with a strike price of $45 using 10,000 trials. 4. Using the Monte Carlo methodology, compute the value of an exotic Asian-style arithmetic average strike European put option using 10,000 trials

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