QUESTION 1 a A European call option written on one share of Ponce de Leon Foods, Inc has the following parameter values S $113, X $102, r 5 p a , 21 p a , T 10 months Find the value of d 1 , rounded to 4 decimals (e g , 0 0712) NOTE Use the continuous time version of the equation (i e , do NOT use the book's version) b A European call option written on one share of Crook Crook, Inc has the following parameter values S $33, X $36, r 5 p a , 24 p a , T 10 months Find the value of d 2 , rounded to 4 decimals (e g , 0 0712) NOTE Use the continuous time version of the equation c A European call option written on one share of Medident Corp has the following parameter values S $220, X $200, r 5 p a , sigma 20 p a , T 6 months Find the call option's premium, rounded to 2 decimals (e g , 3 24) Do NOT include the $ sign in your answer write only the numerical value NOTE Use the continuous time version of the Black Scholes equation (i e , do NOT use the book's version)

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QUESTION 1 a. A European call option written on one share of Ponce de Leon Foods, Inc. has the following parameter values: S = $113,

QUESTION 1

a. A European call option written on one share of Ponce de Leon Foods, Inc. has the following parameter values: S = $113, X = $102, r = 5% p.a., = 21% p.a., T = 10 months. Find the value of d₁, rounded to 4 decimals (e.g., 0.0712). NOTE: Use the continuous time version of the equation (i.e., do NOT use the book's version).

b. A European call option written on one share of Crook & Crook, Inc. has the following parameter values: S = $33, X = $36, r = 5% p.a., = 24% p.a., T = 10 months. Find the value of d₂, rounded to 4 decimals (e.g., 0.0712). NOTE: Use the continuous time version of the equation

c. A European call option written on one share of Medident Corp. has the following parameter values: S = $220, X = $200, r = 5% p.a., sigma = 20% p.a., T = 6 months. Find the call option's premium, rounded to 2 decimals (e.g., 3.24). Do NOT include the $ sign in your answer; write only the numerical value. NOTE: Use the continuous time version of the Black-Scholes equation (i.e., do NOT use the book's version).