Question
1. What is the price of Meta stock on April 15th? 2. What is the price of the May 5th 215 put on April 12th?
1. What is the price of Meta stock on April 15th?
2. What is the price of the May 5th 215 put on April 12th? What would be the return from buying it on the 12th and selling it on the 15th?
3. Using the Black Scholes model, calibrate the May 5th 210 put on April 12th.
Create a data table with the May 5th 210 put price as the output variable. The row input is the stock price. Start with $210 and go to $230 in increments of $5. The column input is the standard deviation. Start with 0.5 and go to 0.7 in increments of 0.05. What would be the time value for the put if the stock price went to $220 and the standard deviation increased to 0.7?
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