Question: please use this template and use formula In the Model tab create an Excel template that calculates the value of a call option using the
please use this template and use formula
In the "Model" tab create an Excel template that calculates the value of a call option using the Black-Scholes model. Assume that you would like to price a call option on Walmart (WMT) that matures in 3 months. The current price of WMT is $152.97 and the exercise price is $137.00. You can assume an implied volatility (i.e., standard deviation) of 28.69% and use the current yield on a 30-year Treasury of 3.74% for the risk-free interest rate.

Black Scholes Option Model Parameters Stock Price Exercise Price Standard Deviation Risk-free Rate Time to Expiration \begin{tabular}{|lc|} \hline \multicolumn{3}{|c|}{ Value of Call option } \\ \hline d1 & #N/A \\ \hline d2 & #N/A \\ \hline Call Option Value & #N/A \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
