For problems 7, 8, and 9, all the options have the same expiration time and the same strike K. For the price of a barrier option, the argument is the value of the barrier. For example, Cupand-o(50) is the price of an up-and-in call option with a barrier of 50. 7. If we let C be the value of a regular call option, which of the following are true? a. Cupand-n(50) - Cupendou(50) = C b. Cup-and-r.(50) = Cup-and-ou (50) c. Cupand-(50) + Cup-and-ou(50) = C d. 2Cup.and:n(50) = C + Cupandou(50) 8. A portfolio consists of an up-and-in call with a barrier of 50 and an up-and-in call with a barrier of 60. Describe the payoff of the portfolio at time T by filling in the table. Time T Payoff Up to time T Stock price did not hit 50 Stock price hit 50, but not 60 Stock price hit 60 9. An option has the following payoff at time T: Up to time T Stock price did not hit 50 Stock price hit 50, but not 60 Time T Payoff 0 2(ST-K) Stock price hit 60 (ST - K)+ What is the premium of this option in terms of C Pupandou(50), Cup-and-our(60), or C? For problems 7, 8, and 9, all the options have the same expiration time and the same strike K. For the price of a barrier option, the argument is the value of the barrier. For example, Cupand-o(50) is the price of an up-and-in call option with a barrier of 50. 7. If we let C be the value of a regular call option, which of the following are true? a. Cupand-n(50) - Cupendou(50) = C b. Cup-and-r.(50) = Cup-and-ou (50) c. Cupand-(50) + Cup-and-ou(50) = C d. 2Cup.and:n(50) = C + Cupandou(50) 8. A portfolio consists of an up-and-in call with a barrier of 50 and an up-and-in call with a barrier of 60. Describe the payoff of the portfolio at time T by filling in the table. Time T Payoff Up to time T Stock price did not hit 50 Stock price hit 50, but not 60 Stock price hit 60 9. An option has the following payoff at time T: Up to time T Stock price did not hit 50 Stock price hit 50, but not 60 Time T Payoff 0 2(ST-K) Stock price hit 60 (ST - K)+ What is the premium of this option in terms of C Pupandou(50), Cup-and-our(60), or C