1. A stock is selling today for $100. The stock has an annual volatility of 45 percent and the annual risk-free interest rate is 12 percent. A 1 year European put option with an exercise price of $90 is available to an investor.
   1. Use Excels data table feature to construct a Two-Way Data Table to demonstrate the impact of the risk free rate of interest and the volatility on the price of this put option:
      1. Risk Free Rates of 5%, 7%, 9%, 12%, 15% and 18%.
      2. Volatility of 35%, 45%, 55%, and 65%.
   2. How is the put option price impacted by varying the risk free rate of interest?
   3. How is the put option price impacted by varying the volatility?