Question: 1a. Suppose that V (S, t) = S^b for a negative real number b, that V satisfies the BlackScholes equation, and that = 0.4, r

1a. Suppose that V (S, t) = S^b for a negative real number b, that V satisfies the BlackScholes equation, and that = 0.4, r = 0.05, = 0. Solve for b. Show your work. 1. b Suppose that r = 0.05 and = 0. Find all real constants b such that V (S, t) = S + b satisfies the BlackScholes equation. Show your work.

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