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Q1. You believe stock price by year end will have the following multinomial distribution (15...

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Q1. You believe stock price by year end will have the following multinomial distribution (15 points): Price Probability 60 10% 80 20% 100 40% 120 20% 140 10% Q1a. What should be the stock price TODAY? (3 points) Q1b. what is the prob that a 110 strike CALL will expire ITM? (3 points) Q1c. what is the conditional average price of underlying stock when 110 strike CALL expires ITM? (3 points) I 1 Q1d. what is the conditional average payment from the 110 strike CALL option when the CALL expires ITM? (3 points) Q1f. based on Q1b-Q1d, how much should the 110 CALL be priced at? (3 points)

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