(b) Consider a claim paying S(T)Q(T) where S and Q follow the risk-neutral processes, the forward price can be written as For (SQ) = For (Sa)For (b)ebpaσo Consider that In(S) and In(Q) have the following information: S(0)=$75, Q(0)=$100, r = 0.07, σs=0.5, σo=0.2, p=-0.35, &s=0.05 and do=0.03. Determine the price today of claims that pay √SO and S√o [10]

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