h.w finance 4 questions only need it after 10 hours

Essay / Problem Question:

1) Show that

2) Find the price of a derivative using the risk neutral method.

a) Determine the risk neutral probabilities

b) Find the value of the value of the derivative at each node.

3) Find the price of a derivative using the replicating portfolio method.

a) Determine Delta

b) Determine the value of the risk free portfolio

c) Determine the value of the derivative at each node.

4) Forecast the financial statements using the percent of sales method.

a) Determine AFN

b) FCF

c) Firm Value