$10 is The stock is currently $10. A call option that expires in 2 months with exercise price Ea selling for 0.3233 in the market. You have estimated the actual volatility of the stock to be 0.8. The risk free rate of return is r = 0.12. 3) Calculate the implied volatility, the market price of the call option. a. b. Set up a hedged portfolio, n- V-AS, and hedge monthly for the next two months. Hedge using the actual volatility. The stock prices at the end of the next 2 months are S $8, S $11. How much money did you make? 2 i0 lz $10 is The stock is currently $10. A call option that expires in 2 months with exercise price Ea selling for 0.3233 in the market. You have estimated the actual volatility of the stock to be 0.8. The risk free rate of return is r = 0.12. 3) Calculate the implied volatility, the market price of the call option. a. b. Set up a hedged portfolio, n- V-AS, and hedge monthly for the next two months. Hedge using the actual volatility. The stock prices at the end of the next 2 months are S $8, S $11. How much money did you make? 2 i0 lz