Write a BSM valuation spreadsheet in Excel for calls and puts. $[$The cumulative normal

function, $N(d),$ in Excel is called NORM.S$.$DIST$($d$).]$ Assume that $r=6\%,=30\%,$ and

dividends $=0.$ Use your BSM spreadsheet and the Solver command $($under the Data menu$)$

to find the implied volatility of the following options.

i$.$ What can you conclude by comparing your answers to $($a$)$ and $($b$)?$

ii$.$ What can you conclude by comparing your answers to $($a$)$ and $($c$)?$

iii. What can you conclude by comparing your answers to $($c$)$ and $($d$)?$