2. Consider the option pricing data for AMD observed on March 22, 2022. Calls are European style and puts are American style. Call or Put P P P P P Option Strike Expiration Price 1 85 29-Apr-22 0.65 2 90 29-Apr-22 1.10 3 98 29-Apr-22 2.10 4 100 29-Apr-22 2.52 5 105 29-Apr-22 3.75 6 110 29-Apr-22 5.45 7 111 29-Apr-22 5.75 8 112 29-Apr-22 6.30 9 116 29-Apr-22 7.20 10 117 29-Apr-22 6.70 11 120 29-Apr-22 5.36 12 125 29-Apr-22 3.65 13 130 29-Apr-22 2.33 14 135 29-Apr-22 1.62 15 140 29-Apr-22 0.99 16 150 29-Apr-22 0.42 aaaaaaaa This is the same data considered in Assignment 3. (a) Write a computer program to find the Black-Scholes price of European call option prices. (Note: I recommend using R for this exercise so you can use the provided normal cumulative distribution function pnorm.) (b) Apply your program from part (a), and the binomial implied volatilities computed in Assign- ment 3, to find the Black-Scholes prices of the European call options for AMD on March 22, 2022. Note the closing price of AMD stock on March 22, 2022 was $114.78. You may assume that R= 0.0025 (continuously compounded). Use a time scale in units of years with 365 days per year, you will need to calculate the number of years T to expiry). 2. Consider the option pricing data for AMD observed on March 22, 2022. Calls are European style and puts are American style. Call or Put P P P P P Option Strike Expiration Price 1 85 29-Apr-22 0.65 2 90 29-Apr-22 1.10 3 98 29-Apr-22 2.10 4 100 29-Apr-22 2.52 5 105 29-Apr-22 3.75 6 110 29-Apr-22 5.45 7 111 29-Apr-22 5.75 8 112 29-Apr-22 6.30 9 116 29-Apr-22 7.20 10 117 29-Apr-22 6.70 11 120 29-Apr-22 5.36 12 125 29-Apr-22 3.65 13 130 29-Apr-22 2.33 14 135 29-Apr-22 1.62 15 140 29-Apr-22 0.99 16 150 29-Apr-22 0.42 aaaaaaaa This is the same data considered in Assignment 3. (a) Write a computer program to find the Black-Scholes price of European call option prices. (Note: I recommend using R for this exercise so you can use the provided normal cumulative distribution function pnorm.) (b) Apply your program from part (a), and the binomial implied volatilities computed in Assign- ment 3, to find the Black-Scholes prices of the European call options for AMD on March 22, 2022. Note the closing price of AMD stock on March 22, 2022 was $114.78. You may assume that R= 0.0025 (continuously compounded). Use a time scale in units of years with 365 days per year, you will need to calculate the number of years T to expiry)