For European call options on a nondividend paying stock: The stock price is 54. Time to expiry is t (in years). The strike price is 54e6.12t The continuously compounded risk-free rate is 12% per annum. The following prices are observed for various times to expiry: Months to Expiry Price 11 2.90 14 5.32 28 9.47 Calculate the implied volatilities of options for these three periods using the Black-Scholes model. (a) For a 11-month option (6) For a 14-month option (c) For a 28-month option For European call options on a nondividend paying stock: The stock price is 54. Time to expiry is t (in years). The strike price is 54e6.12t The continuously compounded risk-free rate is 12% per annum. The following prices are observed for various times to expiry: Months to Expiry Price 11 2.90 14 5.32 28 9.47 Calculate the implied volatilities of options for these three periods using the Black-Scholes model. (a) For a 11-month option (6) For a 14-month option (c) For a 28-month option