Question
I don't know how to create the table or. the formula to use can you please give instructions for both: A stock is selling today
I don't know how to create the table or. the formula to use can you please give instructions for both:
A stock is selling today for $42. The stock has an annual volatility of 70 percent and the annual risk-free rate is 8 percent. a. Use Excels data table feature to construct a One-Way Data Table to demonstrate the impact of the stock price on both the price and intrinsic value for a 15 month European call option with an exercise price of $37. Use stock prices ranging from $10 to $90 in increments of $10. i. Based on your data table, construct a graph that demonstrates the impact of the stock price on both the price and intrinsic value of this call option. ii. How is the intrinsic value of the call option impacted as the stock price changes? iii. How is the time value of the call option impacted as the stock price changes
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