Question: (Answer Through an Excel Spreadsheet) Suppose that a European call on Nike stock has a strike price of $100. The option matures in six months.

(Answer Through an Excel Spreadsheet) Suppose that a European call on Nike stock has a strike price of $100. The option matures in six months. The volatility of Nike stock is 30% per year, the risk-free rate of interest is 2% and Nike is currently selling for $105. a) Use Black-Scholes to price this option. b) Use the put-call parity condition to price a European put on Nike with a strike price of $100 and a maturity of 6 months.

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