Question 4:

3. Given a stock (S(t)) that follows GBM, with parameters a-2. and S(0) 43.12. find the value of a European call and put option with strike K 43 and maturity in six months in a market with risk-free interest rate r- .05 given: (b) t-.25, given S(t)-S(0) For both of the times above, confirm the put-call parity 4. For the previous call options, what is the position in the underlying stock for the replicating portfolio for each t