3. A stock price is currently $78. The risk-free rate is 5%. A European call option on that stock with expiration in 4 months and strike price $82 is currently selling for $2.83. Use your spreadsheet to estimate the implied volatility. Begin by guessing a volatility and plugging it into your spreadsheet. If the price for a call option is not $2.83, adjust your guess. On your homework, write down which volatilities you guessed and what the prices of call options would be for those guesses. Explain how you chose to guess the values you guessed.