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Exercise 1- Call Option Pricing 1. What is the price of the Call option with the above features in a Black-Scholes-Merton framework? 2. Plot the

Exercise 1- Call Option Pricing 1. What is the price of the Call option with the above features in a Black-Scholes-Merton framework? 2. Plot the Black-Scholes-Merton Call price for different values of S0. What do you observe? Can you explain intuitively what is going on? 3. Plot the Black-Scholes-Merton Call price for different values of T. What do you observe? Can you explain intuitively what is going on? 4. Plot the Black-Scholes-Merton Call price for different values of . What do you observe? Can you explain intuitively what is going on? 5. Plot the Black-Scholes-Merton Call price for different values of r. What do you observe? Can you explain intuitively what is going on

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