Suppose that the stock price today is S(t) = 2:00, the interest rate is r = 0%,

Question:

Suppose that the stock price today is S(t) = 2:00, the interest rate is r = 0%, and the time to is 3 months. Consider an option whose Black-Scholes price is given by the function
V (t, s) = s2e2(T−t) ,
where the time is in annual terms. What is the option price today? What is the volatility of the stock equal to?
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...