1. (a) Write an R programme to compute the price of a 6-month European call option on a non dividend paying stock with strike price 60 when the current stock price is 60, the risk free interest rate is 10% per annum and the volatility is 20%. [4 marks] (b) Consider the classical risk model in which the distribution of the aggregate amount of claim S is a compound Poisson with parameter 1 = 4 and claim distribution Gamma(3,2). Write an R programme to find the approximation of the cdf of S on (0,30) (use the unbiased method) and to find its mean. [6 marks] 1. (a) Write an R programme to compute the price of a 6-month European call option on a non dividend paying stock with strike price 60 when the current stock price is 60, the risk free interest rate is 10% per annum and the volatility is 20%. [4 marks] (b) Consider the classical risk model in which the distribution of the aggregate amount of claim S is a compound Poisson with parameter 1 = 4 and claim distribution Gamma(3,2). Write an R programme to find the approximation of the cdf of S on (0,30) (use the unbiased method) and to find its mean. [6 marks]