Question: (2) Use the Black-Scholes methodology to find an explicit formula for the fair price at time t of a contingent claim of which the pay

(2) Use the Black-Scholes methodology to find an explicit formula for

(2) Use the Black-Scholes methodology to find an explicit formula for the fair price at time t of a contingent claim of which the pay off at maturity T is ST, where St denotes the price of the underlying at time T. Choose the best answer. The following answers are proposed. (a) S() 05(r-2502)(-1) (b) S(1) 9.5(r+.2502176 (c) St)e-05(r+.2562)(-1) (d) S(t)e-0.5(-2562)7-1) (e) None of the above Choose the best answer. (2) Use the Black-Scholes methodology to find an explicit formula for the fair price at time t of a contingent claim of which the pay off at maturity T is ST, where St denotes the price of the underlying at time T. Choose the best answer. The following answers are proposed. (a) S() 05(r-2502)(-1) (b) S(1) 9.5(r+.2502176 (c) St)e-05(r+.2562)(-1) (d) S(t)e-0.5(-2562)7-1) (e) None of the above Choose the best

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