The current stock price is $70. The CCIR is 5%. The price of a European call option with strike price K=$40 and time to maturity T=0.8 is $39. What is the forward price of the stock for delivery T=0.8? a. b. What is the price of a European Put with strike price K=40 and time to maturity T=0.8? c. What is the approximate price of a Put option with strike price K=41 and time to maturity T=0.8? d. What is the approximate price of the following payoff: $1 $40 $41 e. What is the approximate price of the following payoff: $1 $40 $41 $42 f. Suppose that Jim is willing to trade (either buy or sell) the payoff in d) at $3. Is there arbitrage? How to exploit it? Specify? g. What is the approximate price of the following payoff? $0.1 $5 $5.1 The current stock price is $70. The CCIR is 5%. The price of a European call option with strike price K=$40 and time to maturity T=0.8 is $39. What is the forward price of the stock for delivery T=0.8? a. b. What is the price of a European Put with strike price K=40 and time to maturity T=0.8? c. What is the approximate price of a Put option with strike price K=41 and time to maturity T=0.8? d. What is the approximate price of the following payoff: $1 $40 $41 e. What is the approximate price of the following payoff: $1 $40 $41 $42 f. Suppose that Jim is willing to trade (either buy or sell) the payoff in d) at $3. Is there arbitrage? How to exploit it? Specify? g. What is the approximate price of the following payoff? $0.1 $5 $5.1