Question 2: (50 points) We can approximate put option price by replacing the mean with sample mean, then the put option can be approximated by: m 1 p(So, K,T,o,r) = eTE|[(K S(T))+] eT (K s)(T))+ m j=1 (1) Using Monte-Carlo Simulation to estimate the put option price using S0 = 100, K100, T = 1, = 0.2, r = 0.05, you can use number of steps n = 252 and number of paths m = 10000 (2) Implement Black-Scholes formula for pricing the put option p(So, K,T,,r)=eTEQ[(K S(T))+] = SN(d)+eT KN(-d) Check the difference between the Black-Scholes price and the Monte-Carlo price.