3. (Pricing a put) A put option with 0.5 year to maturity is written on a stock whose current price is $40. The option's exercise price is $38, the interest rate is 4%, and the stock's volatility is 30%.

a. Find the put option price using the Black-Scholes model.

b. Make a table showing the option's price for maturities ranging from T= 0.2, 0.4, . . ., 2.0. (Excel hint: By far the easiest way to do this is to use Data Table)

3. (Pricing a put) A put option with 0.5 year to maturity is written on a stock whose current price is $40. The option's exercise price is $38, the interest rate is 4%, and the stock's volatility is 30%. a. Find the put option price using the Black-Scholes model. b. Make a table showing the option's price for maturities ranging from T=0.2,0.4,,2.0. (Excel hint: By far the easiest way to do this is to use Data Table, explained in Chapter 24.)