Question: Please answer the below questions with solutions ASAP! Thanks. 6. The table below contains the implied volatility and option price for a series of call

Please answer the below questions with solutions ASAP!

Thanks.Please answer the below questions with solutions ASAP! Thanks. 6. The tablebelow contains the implied volatility and option price for a series of

call options of varying strike prices and varying time to expiration. The

6. The table below contains the implied volatility and option price for a series of call options of varying strike prices and varying time to expiration. The current stock price is s74.90. Suppose I want to buy the at-the-money option which is relatively cheapest. Which option should I buy? Actual option price Implied Volatility December January April December January April (T 0.17) (T 0.25) (T 0.50 T 0.1 T 0.25 6.95 4.35 5.89 0.300 0.280 0.320 70 2.46 3.02 4.40 0.284 0.275 0.290 1.13 2.20 0.77 0.257 0.269 0.285 a. December, X-75 b. January, X-75 c. April, X-75 d. January, X-70 e. December, X-80

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