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Question is about Financial Econmics: It's a bit long question, please quick anser, it does not need to be correct. I will definitely thumbs up for any input you make. Thanks.

01) You wish to hedge against interest rate changes. Hence, you enter into a swap contract with another party for the next ten years. The term structure and the notional amount are shown on the right. Notional amount 2992968 Term Structure Year Rate (%) 1,640 [15 pts] a) What is the value of the floating rate portion of the swap? 1,789 1,811 V_float= 2,145 5 2,217 1 2 3 4 6 2,219 [15 pts] b) Determine the fixed rate for the contract such that the swap has a value of zero at the signing of the cont 7 8 2,745 3,054 3,840 9 10 4,073 02) You would like to purchase a call option for a stock. Today is August 12, 2021 before the market has opened. Option Type Stock Price Strike Price Expiration Interest Rate X (Annual - 252 trading days) 26,88 18,00 0,1.58 August, 2021 2,096 Call (15 pts] a) How many days (for price calculations) until the option expires? (Consider weekdays only!). Days [15 pts] b) Regardless of the solution in part (a), assume that the expiration date is August 25, 2021. Create the complete daily binomial lattice for Show your lattice either on Excel or with a file uploaded with the question number to receive credits. [15 pts] c) Using the daily binomial lattice of part (b), calculate the option value and fill in the yellow cell. Show your option value lattice either on Excel or on a handwritten document that is uploaded with the question number to receive credits. Option Values Q3) Consider one month European call and put options having the same underlying asset. The call option has the strike price of USD 46 while the put option has USD 48. At time t=0, we observe that the stock price is equal to USD 33. At the expiration date (t=1), stock price is observed as USD 46. Assume that options have zero premium. For each of the options, determine whether are we in-the-money or not? Explain it graphically either on Excel or on a handwritten document that is uploaded with the question number to receive credits

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