10. (Requires Writing Code) Write a program to simulate monthly returns for two years from...

10. (Requires Writing Code) Write a program to simulate monthly returns for two years from a process where returns r are drawn from a normal distribution with mean 10% and standard deviation which follows the risk-neutral process:

The initial stock price is $100 and the initial Each month the stock price grows as follows:

(a) Price call options for strikes: 90,100,110 with Assume the interest rate is zero.

(b) Now set and reprice the options for these strikes. Compare your results with those in (a) and comment.