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Create a hedging strategy based on Yahoo by completing the following: Price the option using the Black-Scholes-Merton formula for the past month. Write a short
Create a hedging strategy based on Yahoo by completing the following: Price the option using the Black-Scholes-Merton formula for the past month. Write a short response to the following questions:
1) What is the price of the option using the Black-Scholes-Merton model?
2) How does the price compare to the price you observe on Yahoo Finance?
3) Why could there be a price difference between the prices calculated using the model and the market price?
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