Question: S0 = $70, X = $70, r = 2%, T = 0.5 years, and = 0.35, =0% a) Estimate the call option Value using Black-Scholes

S0 = $70, X = $70, r = 2%, T = 0.5 years, and = 0.35, =0% a)

  1. Estimate the call option Value using Black-Scholes
  2. Show a table for stock price between $50 and $80 in $5 increments with payoff and net profit for a put option with a strike/ exercise price of X=$65 and premium of $4

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