Go to the

address shown in the book:

http://www.hoadley.net/options/bs.htm

scroll down to the online options calculator. What happens

to the price of an option under each of the following

situations?

a. The strike price increase-

b. Interest rate increases-

c. Volatility increases-

d. The time until the option matures increases-

Use the example already set up, or try a strike price = $75,

current market price of the underlying asset = $80, and try

3 months to expiration. Or try any other combination you

want.