Question 5 (a) Consider the newly issued European-style lookback options on a non-dividend paying stock where the stock price is $50, the stock price volatility is 25% per annum, risk-free interest rate is 3% per annum and time to expiry is three months. Find the prices of a lookback call and a lookback put. [10 marks] (b) Consider a down-and-in put option on a non-dividend paying stock where the stock price is $50, the stock price volatility is 25% per annum, the risk-free interest rate is 5% per annum. The barrier level is $60, the exercise price is $55, and time to expiry is one month. Find the price of this option. [10 marks] Question 5 (a) Consider the newly issued European-style lookback options on a non-dividend paying stock where the stock price is $50, the stock price volatility is 25% per annum, risk-free interest rate is 3% per annum and time to expiry is three months. Find the prices of a lookback call and a lookback put. [10 marks] (b) Consider a down-and-in put option on a non-dividend paying stock where the stock price is $50, the stock price volatility is 25% per annum, the risk-free interest rate is 5% per annum. The barrier level is $60, the exercise price is $55, and time to expiry is one month. Find the price of this option. [10 marks]