Question C: The stock of Microloft is priced at $200 today. What is the price of a call option on Microlofts stock with a strike price of zero? Pricing options

1. More information is needed
2. Impossible to price such an option even if more information was available
3. Price of call option is $200
4. Price of call option is $0

Question D: Consider a stock of Capote Ltd. This stock can take only one of two values a year from now, either $145 or $95. The current price of Capotes stock is $120. Consider a call option on Capote stock with an strike price of $120 expiring in a year. The risk free rate is 7% per year. What is the price of Capotes call option?

1. $16.70
2. $15.61
3. $14.31
4. $16.23

Question E: Determine the forward price of the euro (EUR) if the current spot price is $1.5715 per euro, the USD interest rate is 6% per year and the EUR interest rate is 7% per year. Interntiol finance

1. $1.5568 per EUR
2. $1.5863 per EUR
3. $1.6658 per EUR
4. $1.6815 per EUR