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?