Problem 1. For this problem, the following set of definitions applies: C = current (European) call option price; P = current (European) call option price; S = current price of a non-dividend paying stock (underlying asset for both options); K = exercise price (common to both options); r = annualized riskless rate of interest; T = time (in terms of number of years) to expiration; and o = annualized standard deviation of underlying asset's rate of return. For each of the following scenarios (A through D), calculate the missing variable(s): Scenario C P S K T A 7 ? $45 $40 6% 50% 0.25 B $2.06 $2.06 ? $35 4% 25% 0.50 C $0.74 $9.36 $20 ? 3% 30% 1 D $7.21 $1.61 $45 $40 6% ? 0.25 A. SCENARIO A (20 points) B. SCENARIO B (10 points) C. SCENARIO C (10 points) D. SCENARIO D (10 points)Problem 1. For this problem, the following set of definitions applies: C = current (European) call option price; P = current (European) call option price; S = current price of a non-dividend paying stock (underlying asset for both options); K = exercise price (common to both options); r = annualized riskless rate of interest; T = time (in terms of number of years) to expiration; and o = annualized standard deviation of underlying asset's rate of return. For each of the following scenarios (A through D), calculate the missing variable(s): Scenario C P S K T A 7 ? $45 $40 6% 50% 0.25 B $2.06 $2.06 ? $35 4% 25% 0.50 C $0.74 $9.36 $20 ? 3% 30% 1 D $7.21 $1.61 $45 $40 6% ? 0.25 A. SCENARIO A (20 points) B. SCENARIO B (10 points) C. SCENARIO C (10 points) D. SCENARIO D (10 points)