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Need help from question 5 to 10

1. Volatility (5 marks] 1. Download three months of daily stock prices for APPLE Inc. (from8/6/2021 to 11/6/2021) a. from: finance.yahoo.com 2. Following the example in Chapter 13, compute the daily return; 3. Compute the standard deviation. II. B-S Model [8 marks] 4. Lookup a. the yield on a three-month U.S. Tbill (from Federal Reserve bank); 5. Assuming the standard deviation is what you computed in part 3 and assume today is 11/6/2021, please determine the prices of the call and put that mature on 12/20/2021 and have the exercise price of $149 using the Black-Scholes basics model. a. Hint: Please input all variables using a formula in Excel. 6. On 11/6/2021, the option premium of a call that matures on 12/20/2021 with K=$149 is $4.35. The option premium of a put option that has the same exercise price and maturity date is $2.40. Compare the option prices you computed in part 5 with these two trading prices. Are they the same? If they are different, why? III. Implied Volatility [7 marks] 7. Use the call option premium (trading price=$4.35) in part 5 to determine the implied volatility from the call option. a. Hint: You need to use goal seek function in Excel. 8. Assuming the standard deviation is what you computed in part 7 and assume today is 11/6/2021, determine the price of the call that expires on 12/20/2021 with the exercise price of $154 using the Black-Scholes basics model. 9. On 11/6/2021, the option premium of a call that matures on 12/20/2021 with the exercise price of $154 is $2.00. Compare the option price you computed in part 8. Are they the same? If they are different, why? IV. Binominal Tree Model [2 marks] 10. If we use binominal tree model to value the option, assume there are 30 steps (trees), what is u and what is d? (Please use the volatility computed in part 1.3.) 1. Volatility (5 marks] 1. Download three months of daily stock prices for APPLE Inc. (from8 /6/2021 to 11/6/2021) a. from: finance.yahoo.com 2. Following the example in Chapter 13, compute the daily return; 3. Compute the standard deviation. II. B-S Model [8 marks] 4. Lookup a. the yield on a three-month U.S. Tbill (from Federal Reserve bank); 5. Assuming the standard deviation is what you computed in part 3 and assume today is 11/6/2021, please determine the prices of the call and put that mature on 12/20/2021 and have the exercise price of $149 using the Black-Scholes basics model. a. Hint: Please input all variables using a formula in Excel. 6. On 11/6/2021, the option premium of a call that matures on 12/20/2021 with K=$149 is $4.35. The option premium of a put option that has the same exercise price and maturity date is $2.40. Compare the option prices you computed in part 5 with these two trading prices. Are they the same? If they are different, why? III. Implied Volatility [7 marks] 7. Use the call option premium (trading price=$4.35) in part 5 to determine the implied volatility from the call option. a. Hint: You need to use goal seek function in Excel. 8. Assuming the standard deviation is what you computed in part 7 and assume today is 11/6/2021, determine the price of the call that expires on 12/20/2021 with the exercise price of $154 using the Black-Scholes basics model. 9. On 11/6/2021, the option premium of a call that matures on 12/20/2021 with the exercise price of $154 is $2.00. Compare the option price you computed in part 8. Are they the same? If they are different, why? IV. Binominal Tree Model [2 marks] 10. If we use binominal tree model to value the option, assume there are 30 steps (trees), what is u and what is d? (Please use the volatility computed in part 1.3.) W Dute Ad come 2021-6-OG 146.927 2021-03-09 146.77 2011-03-10 146 2012-08-11 145. GAT au 2021-03-12 14.673 2021-03-13 14 2012-08-16 150.00 2021-03-17 149.971 ad 2021-01 146. 147 and! 2011-03-19 1866 2011-06-20 147.97 ad 2021-03-23 149492 ad 2021-03-24 149.402 2012-08-25 1414 2012-06-26 147.25 2021-6-27 14 2021-03-30 152.97 2011-03-31 15L. GOD 2011-09-01 152.2 son 13 2012-09-02 15 426 2011-02-03 154LOTS . 2012-09-07 156.162 . 2012-09-06 15 2012-09-09 151 2012-09-10 1473 2012-09-13 12 . 2021-09-14 147.904 2021-05 141 2021-09-16 14573 IZ 1 2021-02-17 16 H7 R1-02-20 1.27 R1-09-21 2021-09-22 146.67 2021-03-23 146.616 2021-03-20 146.70G 2021-03-27 146. 150 2021-03-20 141703 2.141 am ST R1-03-23 12.62 R1-09-01AL2 21.10. 13 1-10-01 21.11 R1-10-08 Dar san 2021-10-G 140.900 URL-10-OG IAL S 10 S 100 R1-10-0 1.2. 12 R1-10-11 11 R1-10-12 IAL 101 ITETYT wa MT wa TO 10-01-10 FOLDT ET-01-120 Mwan WYT R1-10-10 10 R1-10-15 10 R1-10-10 110 11 2017-10-19 14543 2021-10-20 149. 2021-10-21 140.00 ad 2021-10-22 14473 2021-10-23 14.423 1 1 1 2021-10-26 149. 102 2017-10-27 14 unde 2012-10-22 152. W 2021-10-29 149.32 2021-11-01 14720 2021-11-02 142.01 2012-11-03 15:20 2021-11-04 130 70 2012-11-06 15L 2010 TOT ET -- 1. Volatility (5 marks] 1. Download three months of daily stock prices for APPLE Inc. (from8/6/2021 to 11/6/2021) a. from: finance.yahoo.com 2. Following the example in Chapter 13, compute the daily return; 3. Compute the standard deviation. II. B-S Model [8 marks] 4. Lookup a. the yield on a three-month U.S. Tbill (from Federal Reserve bank); 5. Assuming the standard deviation is what you computed in part 3 and assume today is 11/6/2021, please determine the prices of the call and put that mature on 12/20/2021 and have the exercise price of $149 using the Black-Scholes basics model. a. Hint: Please input all variables using a formula in Excel. 6. On 11/6/2021, the option premium of a call that matures on 12/20/2021 with K=$149 is $4.35. The option premium of a put option that has the same exercise price and maturity date is $2.40. Compare the option prices you computed in part 5 with these two trading prices. Are they the same? If they are different, why? III. Implied Volatility [7 marks] 7. Use the call option premium (trading price=$4.35) in part 5 to determine the implied volatility from the call option. a. Hint: You need to use goal seek function in Excel. 8. Assuming the standard deviation is what you computed in part 7 and assume today is 11/6/2021, determine the price of the call that expires on 12/20/2021 with the exercise price of $154 using the Black-Scholes basics model. 9. On 11/6/2021, the option premium of a call that matures on 12/20/2021 with the exercise price of $154 is $2.00. Compare the option price you computed in part 8. Are they the same? If they are different, why? IV. Binominal Tree Model [2 marks] 10. If we use binominal tree model to value the option, assume there are 30 steps (trees), what is u and what is d? (Please use the volatility computed in part 1.3.) 1. Volatility (5 marks] 1. Download three months of daily stock prices for APPLE Inc. (from8 /6/2021 to 11/6/2021) a. from: finance.yahoo.com 2. Following the example in Chapter 13, compute the daily return; 3. Compute the standard deviation. II. B-S Model [8 marks] 4. Lookup a. the yield on a three-month U.S. Tbill (from Federal Reserve bank); 5. Assuming the standard deviation is what you computed in part 3 and assume today is 11/6/2021, please determine the prices of the call and put that mature on 12/20/2021 and have the exercise price of $149 using the Black-Scholes basics model. a. Hint: Please input all variables using a formula in Excel. 6. On 11/6/2021, the option premium of a call that matures on 12/20/2021 with K=$149 is $4.35. The option premium of a put option that has the same exercise price and maturity date is $2.40. Compare the option prices you computed in part 5 with these two trading prices. Are they the same? If they are different, why? III. Implied Volatility [7 marks] 7. Use the call option premium (trading price=$4.35) in part 5 to determine the implied volatility from the call option. a. Hint: You need to use goal seek function in Excel. 8. Assuming the standard deviation is what you computed in part 7 and assume today is 11/6/2021, determine the price of the call that expires on 12/20/2021 with the exercise price of $154 using the Black-Scholes basics model. 9. On 11/6/2021, the option premium of a call that matures on 12/20/2021 with the exercise price of $154 is $2.00. Compare the option price you computed in part 8. Are they the same? If they are different, why? IV. Binominal Tree Model [2 marks] 10. If we use binominal tree model to value the option, assume there are 30 steps (trees), what is u and what is d? (Please use the volatility computed in part 1.3.) W Dute Ad come 2021-6-OG 146.927 2021-03-09 146.77 2011-03-10 146 2012-08-11 145. GAT au 2021-03-12 14.673 2021-03-13 14 2012-08-16 150.00 2021-03-17 149.971 ad 2021-01 146. 147 and! 2011-03-19 1866 2011-06-20 147.97 ad 2021-03-23 149492 ad 2021-03-24 149.402 2012-08-25 1414 2012-06-26 147.25 2021-6-27 14 2021-03-30 152.97 2011-03-31 15L. GOD 2011-09-01 152.2 son 13 2012-09-02 15 426 2011-02-03 154LOTS . 2012-09-07 156.162 . 2012-09-06 15 2012-09-09 151 2012-09-10 1473 2012-09-13 12 . 2021-09-14 147.904 2021-05 141 2021-09-16 14573 IZ 1 2021-02-17 16 H7 R1-02-20 1.27 R1-09-21 2021-09-22 146.67 2021-03-23 146.616 2021-03-20 146.70G 2021-03-27 146. 150 2021-03-20 141703 2.141 am ST R1-03-23 12.62 R1-09-01AL2 21.10. 13 1-10-01 21.11 R1-10-08 Dar san 2021-10-G 140.900 URL-10-OG IAL S 10 S 100 R1-10-0 1.2. 12 R1-10-11 11 R1-10-12 IAL 101 ITETYT wa MT wa TO 10-01-10 FOLDT ET-01-120 Mwan WYT R1-10-10 10 R1-10-15 10 R1-10-10 110 11 2017-10-19 14543 2021-10-20 149. 2021-10-21 140.00 ad 2021-10-22 14473 2021-10-23 14.423 1 1 1 2021-10-26 149. 102 2017-10-27 14 unde 2012-10-22 152. W 2021-10-29 149.32 2021-11-01 14720 2021-11-02 142.01 2012-11-03 15:20 2021-11-04 130 70 2012-11-06 15L 2010 TOT ET