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Posted on Jul 25, 2024

1. Find a relatively heavily traded stock (high volume) that has options available. You can find these on Yahool Finance 2. Find a call and

1. Find a relatively heavily traded stock (high volume) that has options available. You can find these on Yahool Finance 2. Find a call and a put that expires around the end of December (Dec. 31 should be available) AND that have exercise prices close to the current stock price. Higher or lower doesn't matter, just close. 3. Calculate the value of the call and put using the Black-Scholes method (using Excel) and assuming the annual volatility is 20%. 4. 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. 5. Report the results from #3 & #4. What trades are suggested by your results (e.g. should you buy/write either option?) Apple Inc. (AAPL) # Add to watchlist og Visitors trend 2W + 10W 9M1 Nasdaqs - Nasdaqs Real Time Price Currency in USD 179.45 +4.89 (+2.80%) 179.84 +0.39 (+0.22%) At close: 04:00PM EST After hours: 07:59PM EST Summary Company Outlook Chart Conversations Statistics Historical Data Profile Financials Analysis Options 1 Previous Close 174.56 Market Cap 2.944T 10 50 IM 6m YTD 1Y SY Max Fullscreen 180.50 179.45 Open 175.21 1.20 Beta (5Y Monthly) PE Ratio (TTM) Bid 179.84 x 1100 31.99 178.17 ASK 179.85 x 900 175.83 Day's Range 174.70 - 179.63 174.56 17350 52 Week Range 116.21.179.63 Volume 115,402,748 10 AM 12 PM EPS (TTM) 5.61 Earnings Date Jan 25, 2022 Jan 31, 2022 Forward Dividend & Yield 0.88 (0.49%) Ex-Dividend Date Nov 05, 2021 1y Target Est 170.78 Related Research The Argus ESG Model PortfolioSustainable Impact Investing. 14 days ago Argle Research View more 04 PM 02 PM Trade prices are not sourced from all markets Avg. Volume 84,921,459 Chart Events Bullish pattern detected Fair Value XX.XX -15% Est. Return Overvalued 110. Commodity Channel Index Performance Outlook Short Mid Term Term 2w.tw GW.M long Term OM View details View all chart patterns AAPL Dec 2021 175.000 put OPR-OPR Delayed Price. Currency in USD Add to watchlist 3.3500 -2.2500 (-40.18%) At close: 04:00PM EST Summary Chart Previous Close 5.6000 Expire Date 2021-12-31 1D SD 1M 6M YTD 1Y SY Max Open 5.0000 Day's Range 3.2700 -5.2500 Bid 3.2500 Contract Range N/A Ask 3.4500 Volume 4,352 Strike 175.00 Open Interest 2.87 10 AM 02 PM 06 PM 10 PM AAPL Dec 2021 167.500 call OPR-OPR Delayed Price. Currency in USD Add to watchlist 13.66 +3.81 (+38.68%) At close: 04:00PM EST Summary Chart Previous Close 9.85 Expire Date 2021-12-31 1D 5D IM 6M YTD 1Y SY Max Full Open 10.13 Day's Range 10.13.13.66 Bid 11.00 Contract Range N/A Ask 14.95 Volume 15,601 Strike 167.50 Open Interest 16.26 1. Find a relatively heavily traded stock (high volume) that has options available. You can find these on Yahool Finance 2. Find a call and a put that expires around the end of December (Dec. 31 should be available) AND that have exercise prices close to the current stock price. Higher or lower doesn't matter, just close. 3. Calculate the value of the call and put using the Black-Scholes method (using Excel) and assuming the annual volatility is 20%. 4. 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. 5. Report the results from #3 & #4. What trades are suggested by your results (e.g. should you buy/write either option?) Apple Inc. (AAPL) # Add to watchlist og Visitors trend 2W + 10W 9M1 Nasdaqs - Nasdaqs Real Time Price Currency in USD 179.45 +4.89 (+2.80%) 179.84 +0.39 (+0.22%) At close: 04:00PM EST After hours: 07:59PM EST Summary Company Outlook Chart Conversations Statistics Historical Data Profile Financials Analysis Options 1 Previous Close 174.56 Market Cap 2.944T 10 50 IM 6m YTD 1Y SY Max Fullscreen 180.50 179.45 Open 175.21 1.20 Beta (5Y Monthly) PE Ratio (TTM) Bid 179.84 x 1100 31.99 178.17 ASK 179.85 x 900 175.83 Day's Range 174.70 - 179.63 174.56 17350 52 Week Range 116.21.179.63 Volume 115,402,748 10 AM 12 PM EPS (TTM) 5.61 Earnings Date Jan 25, 2022 Jan 31, 2022 Forward Dividend & Yield 0.88 (0.49%) Ex-Dividend Date Nov 05, 2021 1y Target Est 170.78 Related Research The Argus ESG Model PortfolioSustainable Impact Investing. 14 days ago Argle Research View more 04 PM 02 PM Trade prices are not sourced from all markets Avg. Volume 84,921,459 Chart Events Bullish pattern detected Fair Value XX.XX -15% Est. Return Overvalued 110. Commodity Channel Index Performance Outlook Short Mid Term Term 2w.tw GW.M long Term OM View details View all chart patterns AAPL Dec 2021 175.000 put OPR-OPR Delayed Price. Currency in USD Add to watchlist 3.3500 -2.2500 (-40.18%) At close: 04:00PM EST Summary Chart Previous Close 5.6000 Expire Date 2021-12-31 1D SD 1M 6M YTD 1Y SY Max Open 5.0000 Day's Range 3.2700 -5.2500 Bid 3.2500 Contract Range N/A Ask 3.4500 Volume 4,352 Strike 175.00 Open Interest 2.87 10 AM 02 PM 06 PM 10 PM AAPL Dec 2021 167.500 call OPR-OPR Delayed Price. Currency in USD Add to watchlist 13.66 +3.81 (+38.68%) At close: 04:00PM EST Summary Chart Previous Close 9.85 Expire Date 2021-12-31 1D 5D IM 6M YTD 1Y SY Max Full Open 10.13 Day's Range 10.13.13.66 Bid 11.00 Contract Range N/A Ask 14.95 Volume 15,601 Strike 167.50 Open Interest 16.26