9. (MATLAB exercise on Chooser Option)

Write a MATLAB program to determine the initial price of chooser option using the BSM formula with the following data:

S(0) 5 100; K 5 105; T0 5 0.5; T 5 1; r 5 8%; σ 5 30%

Now plot the initial price of option by varying the following parameters at a time while keeping the other parameters fixed.

a. S(0)

b. K

c. T0 Also plot the variation of option price with T0 & T together and keeping other parameters fixed.