Part A (5 marks): i. When valuing European Vanilla Options


Part A (5 vestiges): 
i. When valuing European Vanilla Options in the Black-Scholes-Merton Model, there is one fount of precariousness. What is this precariousness? (3 vestiges) Max 50 opinion. 
ii. Why does a less overcome aspect in a European vanilla liberty keep privative delta (Δ)? (2 vestige) Max 75 opinion 


 Part B (5 vestiges): 
The prevalent cost of a non-dividend paying asset is $65, the riskless concern blame is 5% p.a. once compounded, and the liberty manliness is five years. What is the inferior season for the esteem of a European vanilla put liberty delay drive cost of $80?

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