Please help with question 8.

8 2,000 shares can be purchased). Compare the change in the investor's wealth from buying the stock and buying the options if the stock price at the expiration of the option is: a $35. b $24. Using the Black-Scholes formulation, compute the value of an option that expires in one year (T = 1) if the following facts apply. S = $45 stock price now K = $40 exercise price = 1.20 (r = 0.20) o? = 0.0225 o = 0.15 DISCUSSION QUESTION Does option theory have an application in the general area of higher education