1. A stock is selling today for $75. The stock has an annual volatility of 40 percent and the annual risk-free interest rate is 8 percent. A 4 month European call option with an exercise price of $70 is available to an investor.
   1. Use Excels data table feature to construct a Two-Way Data Table to demonstrate the impact of the exercise price and the options duration on the price of this call option:
      1. Option durations of 4 months, 8 months, 12 months, and 16 months.
      2. Exercise prices of $60, $70, $80, and $90.
   2. How is the call option price impacted by varying the exercise price?
   3. How is the call option price impacted by varying the duration of the option? PLEASE USE EXCEL AND SHOW FORMULAS