Q1 (Just need 3rd part)

Q2

A stock trades for $43 per share. A call option on that stock has a strike price of $52 and an expiration date three months in the future. When the volatility of the stock's returns is 30%, the Black and Scholes value of the option is $3.82. Now assume, the volatility of the stock's returns is 44%, and the risk-free rate is 2%. Intuitively, would you expect this to cause the call price to rise or fall? By how much does the call price change? Intuitively, would you expect this to cause the call price to rise or fall? (Select the best answer below.) O A. The call price will fall with the volatility of the stock's returns. OB. The call price will not change with the volatility of the stock's returns. C. The call price will rise with the volatility of the stock's returns The Black and Scholes value of this call option is $ 1.16. (Round to the nearest cent.) The call price changes by $ (Round to the nearest cent.) Dorothy Santosuosso does a lot of investing in the stock market and is a frequent user of stock-index options. She is convinced that the market is about to undergo a broad retreat and has decided to buy a put option on the S&P 100 Index. The put carries a strike price of 911 and is quoted in the financial press at $14.53. Although the S&P Index of 100 stocks is currently at 896.18, Dorothy thinks it will drop to 859 by the expiration date on the option. How much profit will she make, and what will be her holding period return if she is right? How much will she lose if the S&P 100 goes up (rather than down) by 30 points and reaches 926 by the date of expiration