Chipotle Mexican Grill, Inc.

CMG

1. (a) Using Yahoo! Finance( *the above company), calculate the average of the bid price and ask price for a call option on your stock maturing on January 19, 2018 with the strike price that is closest to being at-the-money (do not round your answer)

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1. (b)Using a Black-Scholes model, the stock price at the close of business today (from Problem 1(i)), the strike price for a call option maturing on January 19, 2018 that is closest to being at-the-money (from Problem 1(ii)), the time in years until maturity (calculated from the answer to Problem 1(iii)), the appropriate risk-free interest rate for this maturity (from Problem 2), and the average premium on the call option (obtained above), calculate the implied volatility for the call option (give your answer as a percentage, to 3 d.p.).