A call option on AMZN exists with the following characteristics:

- 1/21/22 expiration from today (12/8/21)

- Current stock price is $3505.49 -

Exercise price is $3510

- interest rate is 2.5%

- stocks volatility is 35%.

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

b. Make a table showing the options price using BS model and intrinsic value for stock prices range from $215, $220 .... $255, $260, $265, etc.

c. Create a graph of the data table you created in b.

d. Do a search for this option online and compare to your calculation. Is your option calculation similar to the actual price? Why or why not?

e. How much would a straddle on this option cost? (assume same variables in original problem for both options and show your work!)