1. Calculate the price of a European call option on a non-dividend-paying stock when the stock price is $52, the strike price is $50, the risk-free rate is 3.0455% (EAR), the volatility is 30% and the time to maturity is 3 months.
2. One More Time Software has 12.0 percent coupon bonds on the market with 15 years to maturity. The bonds make semiannual payments and currently sell for 112.1 percent of par. What is the current yield on the bonds? The YTM? The effective annual yield?