equations

Please use Python!

0.1. Black-Scholes calculator. Define a function in Python using def that takes as inputs the parameters T,K,St,t,r, and returns the prices of a European call and a European put in the Black-Scholes model as in equation (10.19). To evaluate the CDF of a standard normal random variable you can import the command norm from scipy. stats in Python. (10.19) f(t,St)=Ct=StN(d+)Ker(Tt)N(d). Here, dare evaluated at x=St also. It is important to keep in mind that St (the current market price or spot price) is known at time t. Therefore, it is a deterministic parameter that can be used to compute the price of the option at time t. Thus, the replicating