Use Excel for this question. The price of a non-dividend-paying stock, 8 months from the expiration of an option, is $75. The exercise price of the option is $70, the risk-free interest rate is 8% per annum and the volatility is 22% per annum.

(a) Find the price of European put for this option using Black-Scholes-Merton formula.

(b) Find the price of European put for this option using Monte-Carlo method, with 5000 simulations.

(c) Find the 95% confidence interval for the option value obtained with the Monte-Carlo method.

A1 e fx A B D E G H 1 J S_O K r sigma T BSM price M-C price C-l interval $? $? lower bound? upper bound? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 A1 e fx A B D E G H 1 J S_O K r sigma T BSM price M-C price C-l interval $? $? lower bound? upper bound? 1 2 3 4 5 6 7 8 9 10 11 12 13 14