3. Consider the information shown below for the at-the-money May option for Biogen taken from thinkorswim. Mark = 230.56 Strike = 230 Days to Maturity = 15 Risk Free Rate = 125 basis points Implied volatility = 27.39% CALL Bid-Ask: BID = 5.40 ASK = 5.90, PUT Bid-Ask: BID = 4.80 ASK = 5.20 a. (6 points) Using the Excel file titled Exam 3 Black-Scholes Worksheets estimate the Call and Put prices for the option. Use the Call & Put Pricing worksheet. Are the options priced in equilibrium? Explain why or why not. b. (6 points) Suppose you are a market maker and wish to generate order flow by cutting the Bid-Ask spread for this Call option. If you would like create a market that is 5.45 BID and 5.65 ASK, what would you use as your quoted Bid-Ask volatilities? Use the Implied Volatility worksheet and report your answers here. c. (6 points) What is the 95% probability range of the price of the underlying for the next 15 days for BIIB?