Let S denote the price of BAC at time t. The spot price of BAC is $50 and the asset will not pay any dividends over the next year. Assume the expected return is 1%, risk-free rate is 2%, the volatility is 0.16. Compute the price of derivative whose payoff in one-year is O(S) where o(s) = 52 + 1000 In(s). Select one: a. e^(-0.01)(50^2(e^(0.01 -0.16^2) e^(0.3242/2) + 1000(In(50) +(0.01 -0.16^2/2)) b. e^(-0.02)(50^2(e^(0.02-0.16^2) e^(0.3242/2) + 1000(In(50) +(0.02 -0.16^2/2)) c. none of above d. 50^2(e^(-0.16^2) e^(0.3212/2) + 1000(In(50) - 0.16^2/2) Let S denote the price of BAC at time t. The spot price of BAC is $50 and the asset will not pay any dividends over the next year. Assume the expected return is 1%, risk-free rate is 2%, the volatility is 0.16. Compute the price of derivative whose payoff in one-year is O(S) where o(s) = 52 + 1000 In(s). Select one: a. e^(-0.01)(50^2(e^(0.01 -0.16^2) e^(0.3242/2) + 1000(In(50) +(0.01 -0.16^2/2)) b. e^(-0.02)(50^2(e^(0.02-0.16^2) e^(0.3242/2) + 1000(In(50) +(0.02 -0.16^2/2)) c. none of above d. 50^2(e^(-0.16^2) e^(0.3212/2) + 1000(In(50) - 0.16^2/2)