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5. Consider a call option on GM stock. Current stock price - $41 Strike price...

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5. Consider a call option on GM stock. Current stock price - $41 Strike price - $43 Risk-free rate - 69% STDEV-20% Maturity - 3 months a) Find the call price using the risk-neutral method. (5 pts) C= Pts - krt 11 b) If you use the real-world method and the expected return (discount rate) on the option is 18%, what is the expected return on the stock? (5 pts) 5. Consider a call option on GM stock. Current stock price - $41 Strike price - $43 Risk-free rate - 69% STDEV-20% Maturity - 3 months a) Find the call price using the risk-neutral method. (5 pts) C= Pts - krt 11 b) If you use the real-world method and the expected return (discount rate) on the option is 18%, what is the expected return on the stock? (5 pts)

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