4. The current price of the SPY is $250 per share, the risk-free interest rate is 5%, and the annualized volatility is l 5%. Use the Black-Scholes formula to calculate N(dl ). N(d2), and the premium for a 3 month call with a strike of $275? Remember that 3 months is 0.25 of a year. This will be our baseline scenario for comparative statics. 5. What is the premium on a call if the current price is $O.50 higher? What is it if the current price is S0.50 lower? Hint: the difference in the premium is the delta of the call. Return to the baseline scenario. What is the call premium call if the volatility increases to 16%? Hint: the difference from the baseline premium is vega of the call. 6