Question 2 a) Consider an at-the-money cash-or-nothing call option on a non-dividend paying stock. The current price of the stock is $50 and the volatility of the stock is 20% per annum, the term to maturity of the option is 12 months, and the risk-free rate is 4% per annum continuously compounded. i. Calculate the price of a cash-or-nothing CALL option in which the cash amount is equal to the strike price (i.e. K=$50). Type answer here - show one line of working and state the final answer ii. Calculate the price of an asset-or-nothing CALL option on the stock. Type answer here -show one line of working and state the final answer iii. Price a European CALL option on the stock using the results from i) and ii). Type answer here - show one line of working and state the final