8. (MATLAB exercise on European Option)

Write a MATLAB program to determine the initial price of European Call and European Put option using the BSM formula with the following data:

S(0) 5 100; K 5 105; T 5 1; r 5 8%; σ 5 30%

Now plot the initial price of both call and put options by varying the following parameters at a time while keeping the other parameters fixed.

a. S(0)

b. K

c. r

d. σ

Also plot the initial call and put price juxtaposed by varying two parameters at a time and keeping other parameters fixed.