Problem 1.7. Consider following stock price table STU 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 94 1044 105 110 98 95 105 94 117 1. Calculate the payoll of following Asian options: Options mature in 2 years (a) (pt)100 strike arithmetic average price call W (pt))100 strike geometric average price call (e) (1 pt)An arithmetic ancrage strike put (d) (pt) ycometric ancrage strike call 2. (3.5 pt)Consider Asian geometric average price call, Asian arithmetic average price call and European call option with same strike and time to maturity. Explain which option is most expensive and which one is cheapest. 3. (pt) You are given following option prices (in brackets) with strike price K and time to maturity is T. An European call (a), A down and in call (b). A down an out call(c). A down and in arithmetic average prior call(d). Show that dosa Problem 1.7. Consider following stock price table STU 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 94 1044 105 110 98 95 105 94 117 1. Calculate the payoll of following Asian options: Options mature in 2 years (a) (pt)100 strike arithmetic average price call W (pt))100 strike geometric average price call (e) (1 pt)An arithmetic ancrage strike put (d) (pt) ycometric ancrage strike call 2. (3.5 pt)Consider Asian geometric average price call, Asian arithmetic average price call and European call option with same strike and time to maturity. Explain which option is most expensive and which one is cheapest. 3. (pt) You are given following option prices (in brackets) with strike price K and time to maturity is T. An European call (a), A down and in call (b). A down an out call(c). A down and in arithmetic average prior call(d). Show that dosa