Question: Use the data from exercise 1 and Data|Table to produce a graph comparing a calls intrinsic value [defined as Max(S X, 0)] and its

Use the data from exercise 1 and Data|Table to produce a graph comparing a call’s intrinsic value

[defined as Max(S − X, 0)] and its Black-Scholes price. From this graph you should be able to deduce that it is never optimal to exercise early a call priced by the Black-Scholes.

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