All assumptions of the Black-Scholes-Merton option pricing model hold. Stock XYZ is priced at Sxyz = $50. It has volatility 6 = 40% per year. The annualized continuously-compounded risk-free interest rate is r = 1.1%. (a) Compute the price of a European call option with strike price K = $48, which matures in 6 months. LA $ (b) Compute the option Delta at time t = 0. (c) Suppose that at time t=0 the stock price changes instantaneously from Sxyz = 50 to Sxyz = 53. Compute the resulting change in the option price. $