Q1-Suppose the stock prices evolve according to the following GBM: =.07 X(t) dt +.3 X(t) dW(t) |dx() | x(0) = 100 Consider a call option with strike of $120 and expiration in 3 years. 1. Determine the probability that the option expires in the money. ( 20 pts.) Q1-Suppose the stock prices evolve according to the following GBM: =.07 X(t) dt +.3 X(t) dW(t) |dx() | x(0) = 100 Consider a call option with strike of $120 and expiration in 3 years. 1. Determine the probability that the option expires in the money. ( 20 pts.)