How to solve example 2?

Examples on Multiple Assets Example 1: Consider a market model with two underlying price processes S1 and S, satisfying dS7 = 1115}dt +015/dW+, dS = 1125}dt+025{dW?, where we assume W. and W? are independent Brownian motions under the market probability P, i.e. dw, dW? = 0. Consider the European contingent claim with final payoff H(T) = S1S. Derive the initial price formula of this contingent claim. Assume the risk-free asset has continuously compounded interest rate r. Example 2: Consider the same stock price model. The contract to be priced is defined by X = max[aS+, 65}], where a and b are given positive numbers. Derive the Black Scholes formula for this contract. Examples on Multiple Assets Example 1: Consider a market model with two underlying price processes S1 and S, satisfying dS7 = 1115}dt +015/dW+, dS = 1125}dt+025{dW?, where we assume W. and W? are independent Brownian motions under the market probability P, i.e. dw, dW? = 0. Consider the European contingent claim with final payoff H(T) = S1S. Derive the initial price formula of this contingent claim. Assume the risk-free asset has continuously compounded interest rate r. Example 2: Consider the same stock price model. The contract to be priced is defined by X = max[aS+, 65}], where a and b are given positive numbers. Derive the Black Scholes formula for this contract