The price of a non-dividend-paying stock is $100. Suppose that the continuously compounded risk-free rate is 1% per year, the market expected return is 7%, the stock beta is 1.2, and the stock price volatility is 30% per year. Assume that the stock price follows the Geometric Brownian Motion.

a) Solve for the expected stock return per year

b) What is the 2-year no-arbitrage forward price written on 100 shares of the stock today?

C) A derivative pays off $100 if the stock price is in the range between $90 and $110 in year two and 0 otherwise. Determine its current price. You can write the result in the form of the cumulative normal distribution function (e.g. ( )).