Question: Put together a Black-Scholes option calculator in Excel to answer the following. (a) What is the call-option value with S0 = $40, K = $40,
(a) What is the call-option value with S0 = $40, K = $40, r = 6%, T = 14 months, and volatility = 40%?
(b) What is the put-option value with S0 = $50, K = $55, r = 6%,T = 18 months, and volatility = 20%?
(c) What is the put-option value with S0 = $38, K = $40, r = 6%, T = 3 months, and volatility = 60%?
(d) What is the call-option value with S0 = $100, K = $95, r = 8%, T = 3 years, and volatility = 40%?
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a Define the option parameters for this call option S 0 ... View full answer
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