please answer the attached 4 short problem sets. show your excel works.

QUESTION 1 :Use two-state option pricing model to find the value of a call option and the intrinsic value given the following parameters: T-bills yield: 3.8 pct. Current stock price: $25.00 No possibility stock will be worth less this amount in one $22.00 year: Exercise Price: $12.00 Value of call = $10.44, Intrinsic Value = $13.00 Value of call = $13.44, Intrinsic Value = $13.00 Value of call = $13.44, Intrinsic Value = $3.00 QUESTION 2 Given the following option quote information: Calls Strike Option and NY Close Expiration Price XYZ February 112 March 112 May 112 August 112 Puts Volume Last Volume Last 85 61 22 3 7.55 8.55 10 12.5 40 22 11 3 0.60 1.55 2.85 4.70 The current stock price is $114.00 and the stock price on the expiration date is $120.00. How much is your options investment worth? (ignore commissions) $6,000.00 $8,000.00 $80.00 QUESTION 3: Given the following parameters use put-call parity to determine the price of a put option with the same exercise price. Current stock price: $47.00 Call option exercise price: $50.00 Sales price of call options: $3.80 Months until expiration of call options: 3 Risk free rate: 5.0 percent Compounding: continuous Price of put option = $4.36 Price of put option = $7.43 Price of put option = $6.18 QUESTION 4: Given the following parameters use risk-neutral valuation to value a call option. Current stock price: $65.00 Stock will increase or decrease next year by: 15 pct. Call Option strike price: $60.00 Time to expiration: 1 year Risk free rate: 8 pct. Value of call: $13.66 Value of call: $10.47 Value of call: $9.44