Question: Use Matlab to solve and show code Take ? = 0.2, r = 0.05, S0 = 10 : 10 : 100, K 50, T =

Use Matlab to solve and show code

Use Matlab to solve and show code Take ? = 0.2, r

Take ? = 0.2, r = 0.05, S0 = 10 : 10 : 100, K 50, T = 2. Use MATLAB builtin function blsprice to compute the Call Option. Use Heat equation with dt-T/N, xmax= 10, xmin=- 10. dx = (xmax-xmin)/ M. Repeat for M-N [10 100 200 400 800]. Plot S0 vs absolute error for all M, N cases. Take ? = 0.2, r = 0.05, S0 = 10 : 10 : 100, K 50, T = 2. Use MATLAB builtin function blsprice to compute the Call Option. Use Heat equation with dt-T/N, xmax= 10, xmin=- 10. dx = (xmax-xmin)/ M. Repeat for M-N [10 100 200 400 800]. Plot S0 vs absolute error for all M, N cases

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