Facebook stock (Ticker: FB) is currently trading at $266.20 per share. Consider call and put options with a strike of K = $270 and expiring in 1 month (expiring on 11/20/2020). Suppose the volatility of FB shares is 46% and r = 0.2% per year (use T=36 days). What are the Black-Scholes prices of the call and put? What are the option Δs? Show that the option prices obey put-call parity? Show that the option Δs obey

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Call 00025 02S 270 270Nd 1 00025 02270 27036157 565 014 Put 00025 02270 2... View the full answer