Question: I need help with these questions for my Homework for a Finance Subject. Please write the answers in a detailed manner. Question 1 ( 4

I need help with these questions for my Homework for a Finance Subject. Please write the answers in a detailed manner.
Question 1(40 Marks)
Sun Screen has a zero coupon bond issue outstanding with a face value of $30,000 that matures in one year. The current market value of the firms asset is $42,400. The standard deviation of the return on the firm's asset is 45%
per year, and the annual risk-free rate is 4% per year, compounded continuously. Based on the Black and Scholes model, what is the market value of the firm's equity and debt?
Question 2(60 Marks)
Assume that a call and put option on ABC stock have the same strike price of $30. The call premium is $2 and the put premium is $3. Please calculate the profit of the call and put option for a person who purchases the options for the following stock prices?
a. Stock price at expiry is $25.(20 Marks)
b. Stock price at expiry is $30.(20 Marks)
c. Stock price at expiry is $35.(20 Marks)

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