Implement $($in Excel$)$ the Black's formula for European calls and puts on forwards.

Calculate the prices of a call and a put using the following assumptions:

$F,50$

K $50$

Volatility $0\mathrm{.}4$

$r,0\mathrm{.}05$

$T-t,0\mathrm{.}5$

Calculate delta, gamma, rho, vega, and theta using the method of finite differences.

Note: The formula for of a call option

Where $F$ is the current forward price, $C-$ the European call price. If you have any questions on how to interpret this formula, ask in class.

The assignment is due after spring break.