(Use MATLAB code)

5. Assume that the stock price follows the local volatility model ds, = rSedt +(Set) SdW, under Q and the goal is to price European call option. The parameters are So = 100, K = 110, r = 0.05, o(S,t) = 0.5e-'(100/S)03, and T = 1. Apply Monte-Carlo method to price this option, e.g., using Euler method. Use two decimals for your answer. 5. Assume that the stock price follows the local volatility model ds, = rSedt +(Set) SdW, under Q and the goal is to price European call option. The parameters are So = 100, K = 110, r = 0.05, o(S,t) = 0.5e-'(100/S)03, and T = 1. Apply Monte-Carlo method to price this option, e.g., using Euler method. Use two decimals for your