Note: Strictly noted don't copy from internet sources, explain your own ideas in detail.

1) Explain Black Scholes Morten and why it is important.

2) The assumptions of Black-Scholes Mortenand discuss its formula.

3) A stock is priced at $50 with a volatility of 35 percent. A call option with an exercise price of $50 has an expiration in one year. The risk-free rate is 5 percent. Construct a table for stock prices of $5, 10, 15, ..., 100. Compute the Black-Scholes-Merton price of the call and the European lower bound and verify that the former is at least as large as the latter.

4) Explain the Lower Bond of a European Call.

5) Conclusion

Provide in-text citations and explain in detail.