1. 11.1 Introduction to Futures and Options Markets, 3rd Edition © 1997 by John C. Hull Volatility Problem Suppose that observations on a stock price (in dollars) at the end of each of 15 consecutive weeks are as follows: 30 1/4, 32, 31 1/8, 30 1/8, 30 1/4, 30 3/8, 30 5/8, 33, 32 7/8, 33, 33 1/2, 33 1/2, 33 3/4, 33 1/2, 33 1/4. Estimate the stock price volatility.

2. 11.2 Introduction to Futures and Options Markets, 3rd Edition © 1997 by John C. Hull Problem What is the price of a European call option on a nondividend-paying stock when the stock price is $52, the strike price is $50, the risk- free interest rate is 12 percent, the volatility is 30 percent per annum, and the time to maturity is three months.

3. 11.3 Introduction to Futures and Options Markets, 3rd Edition © 1997 by John C. Hull Problem What is the price of European put option on a nondividend-paying stock when the stock price is $69, the strike price is $70, the risk free interest rate is 12 percent per annum, the volatility is 35 percent per annum, and the time to maturity is six months.