just answer 7 please

consider a call option for an asset with the following parameters:

-current spot price is $50

-option expires in 12 months

-each month the asset could increase in value by 3% or decrease in value by inverse

-the risk rate is 25 basis points per month -So=$50, T=12, U=1.03, R=1.0025

1. What is the formula for the delta of the option as a function of (U,D,R,Vu,Vd)?

2. Determine the terminal distribution of the asset price?

3.Describe distribution (mean, standard deviation, shape)

4. Use the distribution to calculate the premium of a call with strike $55 (10% otm) expiring in 12 months

5. Explain the premium in terms of what you expect to receive for selling and what you expect to spend for purchasing (all on a discount basis)

6. What is the premium of a put with same strike and some time to expiration?

7. What is the 12 month forward price?