Question: The stock price ( S ( 0 ) ) today equals $ 1 0 0 . Assume that the Black - Scholes setting holds. Let

The stock price (S(0)) today equals $100. Assume that the Black-Scholes setting holds. Let r denote the
continuously compounded risk-free interest rate. Consider a European call option with exercise date T=
10 and strike price K=S(0)erT. You are given that its price today equals $68.26. The goal of this problem is
to obtain the implied volatility of the stock S.
The stock price (S(0)) today equals $100. Assume that the Black-Scholes

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