stock price goes psan the six standard assumptions of a portfolio model with a brief explanation of 5. Write out each. 6. Define arbitrage. In US dollars, let A(0)-100, A(1)-110, S(0)-50, and UsD/CAD .75 which is fixed from time 0 to time 1. A forward for stock S is offered at time 1 in CAD F-73.33. Is there an arbitrage opportunity? For the Black-Scholes option pricing model, list the five variables that determine the option 7. price. Show in a table whether each of those variables increases or decreases for a call option and a put option when the price of the underlying increases. What is implied volatility? How is implied volatility calculated? What is historical volatility? Define a European call option. Why is a European call option the standard for optionprice calculation in the Black-Scholes model? stock price goes psan the six standard assumptions of a portfolio model with a brief explanation of 5. Write out each. 6. Define arbitrage. In US dollars, let A(0)-100, A(1)-110, S(0)-50, and UsD/CAD .75 which is fixed from time 0 to time 1. A forward for stock S is offered at time 1 in CAD F-73.33. Is there an arbitrage opportunity? For the Black-Scholes option pricing model, list the five variables that determine the option 7. price. Show in a table whether each of those variables increases or decreases for a call option and a put option when the price of the underlying increases. What is implied volatility? How is implied volatility calculated? What is historical volatility? Define a European call option. Why is a European call option the standard for optionprice calculation in the Black-Scholes model