Using the data in Table 21.1, compare the price on July 24, 2009, of the following options on JetBlue stock to the price predicted by the Black-Scholes formula. Assume that the standard deviation of JetBlue stock is 65% per year and that the short-term risk-free rate of interest is 1% per year.

a. December 2009 call option with a $5 strike price

b. December 2009 put option with a $6 strike price

c. March 2010 put option with a $7 strike price Appendix