Question 4 Consider a stock that is trading at $60 a share. The annual volatility of the stock is 25 percent, and the 3-month nominal risk-free interest rate is 8 percent. (a) Find the value of a 3-month European call option on the stock with exercise or strike price equal to $62.5. (b) Find the value of a 3-month European put option with exercise price equal to $60. (c) Consider a derivative security that pays, in three months, the three times the stock price that will prevail in 3 months. In other words, this security will pay 35, where Sidenotes the stock price in 3 months. Find the value of this derivative security today