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For Alphabet (GOOG), use strike prices of 1050, Use the options with April 20, 2018 expiration date for all computations, Assume dividends are zero and

image text in transcribedFor Alphabet (GOOG), use strike prices of 1050, Use the options with April 20, 2018 expiration date for all computations, Assume dividends are zero and the risk-free interest rate is 2% in all computations . Compute the implied volatilities for puts and calls using mid price data: mid price is the average of the bid and ask prices.

GOOG Options: Composite Calls & Puts Near the Money Type: Monthly Go Mar 18 Apr 18 | May 18 | Jun 18 | Aug 18 | Sep 18 | Jan 19 | Jun 19 | Jan 20 |Near Term | All Option Chain for Alphabet Inc. (GOOG) Last Chg Bid Ask Vol Open Root Strike Puts Last Chg Bid Ask Vol pen Calls Int Apr 20 125.99 15.74 119.10 127.50 2 248 GOOG 1050 4.00 -0.80 4.10 5.10 16 1177 2018 Apr 20 122.00 20.00 116.20 121.90 2 90 GOOG 1055 A 4.30 -0.70 4.50 5.60 10 2018 Apr 20 120.00 13.78 111.50 116.90 1 1322 GOOG 1060 5.10 -0.46 4.90 6.10 16 80 2018 2018 Apr 20 Apr 20 107.60 112.30 0 140 GOOG 1065 4.65 -3.18 5.30 6.50 4 93 2018 84.00 105.20 7.20 100.70 108.10 1 63 GOOG 1070 6.10 -0.50 5.70 7.20 65 103 2018 Apr 20 5.73 1.56 6.30 7.80 3 104 103.95 14.88 97.70 103.40 2 164 GOOG 1075 2018 Apr 20 100.00 10.00 93.30 99.40 3 143 GOOG 1080 6.70 3.40 7.00 7.80 16 104 2018

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