Please provide correct answers for the following:

c) A stock index is at 755.42. A futures contract on the index expires in 57 days. The risk free rate is 6.25%. At expirations the value of the dividends on the index is 3.94. Assume one year has 365 days. Required: i. The appropriate futures price, using both the future value of the dividends and the present value of the dividends. ii. The appropriate futures price in terms of the two specifications of the dividend yield. 111. The futures price under the assumption of continuous compounding of interest and dividends based on the solution obtained in (c) (ii ) above..c) The price of a futures contract is Sh.278.38 and a European call option on this futures contract has an exercise price of Sh.250.00 with a time to expiration of 220 days. The continuously compounded risk-free rate is 21.25 per cent and the volatility is 0.19. A year is assumed to have 365 days. Required: The price of the call using the Black Model. Hint: The formula for the Black Model is given by: C = e-T'T Ufo(T) N(d1) - XN(d2)] P = e T'T (X [1 - N(d2)]- fo(T) [1 -N(dj)]) Where: In d1 = OVI dz = d1 - ovT fo (T) = The futures price C = Price of the European call on futures contract X = Exercise price P = Price of European put = Continuously compounded risk-free-rate = Annualised standard deviation of the continuously compounded return on the stock.c) When informed of the scheme in (b) above, one middle level manager of Zawadi Lid, stated that he would rather receive put options than call option as they would be more valuable to him: i. Explain whether or not Zawadi Ltd. should agree to offer him put options. ii. Is the manager correct in his statement that put options would be more valuable to him? Explain. NB: C = SN(dj) - E(e "t). N(d2) In E + (rt + 0.582) t Where: d = - SVt d2 = d1 - 8 Vt