Consider a European call option which is trading at $3.00. The current stock price is $60.00, the strike price is $65, the riskfree rate is 8% per year and the option has 3 months to expiration.

1. Use the first two iteration of NewtonRaphson method to determine the implied volatility of this option. Make sure to clearly indicate all the steps. (15 pts.)

2. Calculate the implied volatility for this option.