Question: Use the following information to answer questions 6-14. Alphabet, Inc. (Ticker: GOOG) is currently trading at $1,045 per share and pays no dividends. The volatility

Use the following information to answer questions 6-14. Alphabet, Inc. (Ticker: GOOG) is currently trading at $1,045 per share and pays no dividends. The volatility of its stock return is 25%. The risk-free rate is 2.50%, the European call option strike price is $1,020, and there are 3 binomial periods. Assume you are trying to value a 1-year option. 10. (1 point) What is the Black-Scholes European call option price? 11. (1 point) What is the delta of the European call option? 12. (1 point) What is the option elasticity of the European call option? Use the Black-Scholes European call option price computed in Question 10

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.