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5. (a) The stock price is 80 the volatility of the stock is 23%. Assuming that the time to expiration is 3 months and the

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5. (a) The stock price is 80 the volatility of the stock is 23%. Assuming that the time to expiration is 3 months and the interest rate is 2% per annum calculate the price P of the European call option with strike 81. (b) Calculate A, T, p, Vega using formulas for these parameters. Calculate the same parameters approximately using the options calculator. (c) Check that following relationship holds + rxA + oxT = rP

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