Please answer A,B and please show Work

5. EVT)N(d)- KN(d2) when a key assumption is satisfied. What is that assumption? a) In Black's model, the payoff for a European call on a variable V is Let T: time to maturity of the option; F: forward price of V for a contract with maturity T Fo: value of F at time zero; K: strike of the option; P(t,T): price at t of a ZC bond paying $1 at T;: value of V at time T; : volatility of F. Then, and d2=d,- T b) What is a formula for the European call for Black's model when interest rates are stochastic? c) What "risk-neutral world" are you assuming for taking expectations