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1 . Find a relatively heavily traded stock ( high volume ) that has options available. You can find these on Yahoo! Finance 2 .
Find a relatively heavily traded stock high volume that has options available. You can find these on Yahoo! Finance
Find a call and a put that expires around the end of December AND that have exercise prices close to the current stock price. Higher or lower doesnt matter, just close.
Calculate the value of the call and put using the BlackScholes method you may use the Excel spreadsheet available on DL and assuming the annual volatility is
Now use the market price of the call and put to estimate the implied volatility you need to use Goal Seek for this of each option.
Report the results from # & # What trades are suggested by your results eg should you buywrite either option?
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