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Q3. European Option Pricing Under Normal Distribution. Underlying at $200. Annual stdev at $40. There are ONE year before expiration. Riskfree rate is zero. Q3a.

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Q3. European Option Pricing Under Normal Distribution. Underlying at $200. Annual stdev at $40. There are ONE year before expiration. Riskfree rate is zero. Q3a. What is the mean price of underlying conditional on a 220 strike PUT expiring ITM (2 points? Q3b. What is the average payment of the 220 PUT conditional on option expiring ITM? (1 point) n br. Q3c. What is the price of the 220 PUT today (2 points) rfin Q3. European Option Pricing Under Normal Distribution. Underlying at $200. Annual stdev at $40. There are ONE year before expiration. Riskfree rate is zero. Q3a. What is the mean price of underlying conditional on a 220 strike PUT expiring ITM (2 points? Q3b. What is the average payment of the 220 PUT conditional on option expiring ITM? (1 point) n br. Q3c. What is the price of the 220 PUT today (2 points) rfin

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