Could you solve 1 and 2 in question 3? I already got the answer of Q2

2 Black-Scholes Price a 3 month European put option with strike price 1300, written on the NZX50 Index. Suppose that the index is currently at 1200. Volatility is 12%, and interest rates are 0.5% with continuous compounding. The firms in the index pay dividends at a continuous rate of 0.25%. Use the Black- Scholes formula. 3 The Greeks Suppose you had written the NZX50 Index option from the previous question. You now need to hedge the option, and in order to do so, have decided to calculate Delta (A), Gamma (T) and Theta (O). 1. Calculate the three quantities using the finite difference technique, using 8 of 0.001. Hint: This may be done quite quickly in excel. 2. Now compare your solutions to the results from the formulae in the textbook. 2 Black-Scholes Price a 3 month European put option with strike price 1300, written on the NZX50 Index. Suppose that the index is currently at 1200. Volatility is 12%, and interest rates are 0.5% with continuous compounding. The firms in the index pay dividends at a continuous rate of 0.25%. Use the Black- Scholes formula. 3 The Greeks Suppose you had written the NZX50 Index option from the previous question. You now need to hedge the option, and in order to do so, have decided to calculate Delta (A), Gamma (T) and Theta (O). 1. Calculate the three quantities using the finite difference technique, using 8 of 0.001. Hint: This may be done quite quickly in excel. 2. Now compare your solutions to the results from the formulae in the textbook