Computational Finance. Please show all work.

7 Question 7 added 4/9/2018*** no code The market price of a stock is So-100 at time to 0 . The stock does not pay dividends. All the options below have strike K = 100 and expiration time T-to = 1 year. The interest rate is r (a constant) and eo) 0.99. 7.1 American call . An American call trades today (time to 0) at a market price-2 . We formulate the following trading strategy (a) buy the call, (b) short sell one share of stock, (c) save money in a bank . The initial value of our portfolio is zero. . Find the general solution where this strategy leads to a profit, in the time interval 0 Find the general solution where this strategy leads to a loss, in the time interval oStT. Your solution must take into account the possibility of early exercise. . It is not permitted to wait indefinitely to cover the short sale. The short stock position must be covered at a time t