please answer 14.11 thanks

14.11 Suppose S = $40, K = $40,0 =0.30,= 0.08, and 8 =0. a. What is the price of a standard European call with 2 years to expiration? b. Suppose you have a compound call giving you the right to pay $2 1 year from today to buy the option in part (a). For what stock prices in 1 year will you exercise this option? c. What is the price of this compound call? d. What is the price of a compound option giving you the right to sell the option in part (a) in 1 year for $2? 14.12 Make the same assumptions as in the previous problem. a. What is the price of a standard European put with 2 years to expiration? b. Suppose you have a compound call giving you the right to pay $2 1 year from today to buy the option in (a). For what stock prices in 1 year will you exercise this option? c. What is the price of this compound call? d. What is the price of a compound option giving you the right to sell the option in part (a) in 1 year for $2? the assumptions and 14.11 Suppose S = $40, K = $40,0 =0.30,= 0.08, and 8 =0. a. What is the price of a standard European call with 2 years to expiration? b. Suppose you have a compound call giving you the right to pay $2 1 year from today to buy the option in part (a). For what stock prices in 1 year will you exercise this option? c. What is the price of this compound call? d. What is the price of a compound option giving you the right to sell the option in part (a) in 1 year for $2? 14.12 Make the same assumptions as in the previous problem. a. What is the price of a standard European put with 2 years to expiration? b. Suppose you have a compound call giving you the right to pay $2 1 year from today to buy the option in (a). For what stock prices in 1 year will you exercise this option? c. What is the price of this compound call? d. What is the price of a compound option giving you the right to sell the option in part (a) in 1 year for $2? the assumptions and