Problem 2 (using the Black-Scholes equation) . Consider the AIA stock: present price = $36, with volatility of annual log- returns o=0.25 The risk-free continuously compounded annual interest rate r=1.8% (a) Consider an European call option of the AIA stock with a strike price K=$39, and with an expiration date T=0.5 (i.e. matured V2 year later). What is the fair present price of the option? half yr later (b) Suppose that 2 month later, the price of the AIA stock = $37.5. What will be the fair price of the option at that time