Question: Problem 3 (6 points): A 9-month forward price on a stock is $100. The price of a 3-months European call option with strike price of

 Problem 3 (6 points): A 9-month forward price on a stock

Problem 3 (6 points): A 9-month forward price on a stock is $100. The price of a 3-months European call option with strike price of $98 on this forward contract is $7. Using Black's model, find the price of a 5. months European put option with strike price of $101 on the same forward contract if the risk- free interest rate is 6%. You may want to use Excel for this question. Problem 3 (6 points): A 9-month forward price on a stock is $100. The price of a 3-months European call option with strike price of $98 on this forward contract is $7. Using Black's model, find the price of a 5. months European put option with strike price of $101 on the same forward contract if the risk- free interest rate is 6%. You may want to use Excel for this

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