need help with problem 2, thanks

Estimate ,u and 0 using this data. Problem 2. You want to buy a forward start option on a stock index S which, on the forward start date 9 months from today, will give you one 6-month to expiration call option with strike price equal to 90% of the price of the underlying on the forward start date (i.6. the six month call option is issued with the strike price equal to 0.9 X 80.75). You are given that that S = 100, a = 0.3,?" 2 008,6 2 0.02. We may assume that the values for 7", a and 6 remain the same over the next 9 months. (1) [7 points] Compute the price of the forward start option at time 0. (2) [3 points] If you are the market maker that writes this forward start option how would you hedge your position? 1