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List detailed steps including EXCEL function used, if any. Rf = 0 and underlying at 100. Annual stdev of $60. 28 trading days left for

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Rf = 0 and underlying at 100. Annual stdev of $60. 28 trading days left for the option before expiration. Use 252 trading days for one year. Q1. PUT option with strike of $110.00. Qla. What is the probability for PUT to expire in the money (4 points)? Q1b. What is the average price of the underlying at expiration conditional on PUT expiring ITM (4 points)? Q1c. Based on Qla, and Qib, how much should the 110 strike PUT be priced at (4 points)? Qid. Compare result of Qld with 1-step pricing with put price formula. How much of values above is time value, and how much is intrinsic value? (4 points) Rf = 0 and underlying at 100. Annual stdev of $60. 28 trading days left for the option before expiration. Use 252 trading days for one year. Q1. PUT option with strike of $110.00. Qla. What is the probability for PUT to expire in the money (4 points)? Q1b. What is the average price of the underlying at expiration conditional on PUT expiring ITM (4 points)? Q1c. Based on Qla, and Qib, how much should the 110 strike PUT be priced at (4 points)? Qid. Compare result of Qld with 1-step pricing with put price formula. How much of values above is time value, and how much is intrinsic value? (4 points)

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