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In this assignment, you will price an option for Facebook (TICKER:FB) and use the Excel upload file provided for your calculations. You have daily prices

In this assignment, you will price an option for Facebook (TICKER:FB) and use the Excel upload file provided for your calculations. You have daily prices for FB between 4/7/2014 and 4/2/2015.

1. Calculate daily returns, volatility and annualized volatility.

2. Calculate the price of Call option on FB that expires on 4/17/2015. Strike price for the option is 77$. Assume youre calculating price on 4/6/2015 and FB trades at $81.56 on that date.

3. After you calculated the price based on your assumptions you realized that the option trades at 4.81$. Calculate the implied volatility using goal seek. Daily Prices

Date FB
4/7/14 56.95
4/8/14 58.19
4/9/14 62.41
4/10/14 59.16
4/11/14 58.53
4/14/14 58.89
4/15/14 59.09
4/16/14 59.72
4/17/14 58.94
4/21/14 61.24
4/22/14 63.03
4/23/14 61.36
4/24/14 60.87
4/25/14 57.71
4/28/14 56.14
4/29/14 58.15
4/30/14 59.78
5/1/14 61.15
5/2/14 60.46
5/5/14 61.22
5/6/14 58.53
5/7/14 57.39
5/8/14 56.76
5/9/14 57.24
5/12/14 59.83
5/13/14 59.83
5/14/14 59.23
5/15/14 57.92
5/16/14 58.02
5/19/14 59.21
5/20/14 58.56
5/21/14 60.49
5/22/14 60.52
5/23/14 61.35
5/27/14 63.48
5/28/14 63.51
5/29/14 63.83
5/30/14 63.3
6/2/14 63.08
6/3/14 62.87
6/4/14 63.34
6/5/14 63.19
6/6/14 62.5
6/9/14 62.88
6/10/14 65.77
6/11/14 65.78
6/12/14 64.29
6/13/14 64.5
6/16/14 64.19
6/17/14 64.4
6/18/14 65.6
6/19/14 64.34
6/20/14 64.5
6/23/14 65.37
6/24/14 65.72
6/25/14 67.44
6/26/14 67.13
6/27/14 67.6
6/30/14 67.29
7/1/14 68.06
7/2/14 66.45
7/3/14 66.29
7/7/14 65.29
7/8/14 62.76
7/9/14 64.97
7/10/14 64.87
7/11/14 66.34
7/14/14 67.9
7/15/14 67.17
7/16/14 67.66
7/17/14 66.41
7/18/14 68.42
7/21/14 69.4
7/22/14 69.27
7/23/14 71.29
7/24/14 74.98
7/25/14 75.19
7/28/14 74.92
7/29/14 73.71
7/30/14 74.68
7/31/14 72.65
8/1/14 72.36
8/4/14 73.51
8/5/14 72.69
8/6/14 72.47
8/7/14 73.17
8/8/14 73.06
8/11/14 73.44
8/12/14 72.83
8/13/14 73.77
8/14/14 74.3
8/15/14 73.63
8/18/14 74.59
8/19/14 75.29
8/20/14 74.81
8/21/14 74.57
8/22/14 74.57
8/25/14 75.02
8/26/14 75.96
8/27/14 74.63
8/28/14 73.86
8/29/14 74.82
9/2/14 76.68
9/3/14 75.83
9/4/14 75.95
9/5/14 77.26
9/8/14 77.89
9/9/14 76.67
9/10/14 77.43
9/11/14 77.92
9/12/14 77.48
9/15/14 74.58
9/16/14 76.08
9/17/14 76.43
9/18/14 77
9/19/14 77.91
9/22/14 76.8
9/23/14 78.29
9/24/14 78.54
9/25/14 77.22
9/26/14 78.79
9/29/14 79
9/30/14 79.04
10/1/14 76.55
10/2/14 77.08
10/3/14 77.44
10/6/14 77.56
10/7/14 76.29
10/8/14 77.52
10/9/14 75.91
10/10/14 72.91
10/13/14 72.99
10/14/14 73.59
10/15/14 73.21
10/16/14 72.63
10/17/14 75.95
10/20/14 76.95
10/21/14 78.69
10/22/14 78.37
10/23/14 80.04
10/24/14 80.67
10/27/14 80.28
10/28/14 80.77
10/29/14 75.86
10/30/14 74.11
10/31/14 74.99
11/3/14 73.88
11/4/14 75.76
11/5/14 74.83
11/6/14 75.26
11/7/14 75.6
11/10/14 75
11/11/14 74.61
11/12/14 74.72
11/13/14 74.25
11/14/14 74.88
11/17/14 74.24
11/18/14 74.34
11/19/14 73.33
11/20/14 73.6
11/21/14 73.75
11/24/14 74.01
11/25/14 75.63
11/26/14 77.62
11/28/14 77.7
12/1/14 75.1
12/2/14 75.46
12/3/14 74.88
12/4/14 75.24
12/5/14 76.36
12/8/14 76.52
12/9/14 76.84
12/10/14 76.18
12/11/14 77.73
12/12/14 77.83
12/15/14 76.99
12/16/14 74.69
12/17/14 76.11
12/18/14 78.4
12/19/14 79.88
12/22/14 81.45
12/23/14 80.61
12/24/14 80.77
12/26/14 80.78
12/29/14 80.02
12/30/14 79.22
12/31/14 78.02
1/2/15 78.45
1/5/15 77.19
1/6/15 76.15
1/7/15 76.15
1/8/15 78.18
1/9/15 77.74
1/12/15 76.72
1/13/15 76.45
1/14/15 76.28
1/15/15 74.05
1/16/15 75.18
1/20/15 76.24
1/21/15 76.74
1/22/15 77.65
1/23/15 77.83
1/26/15 77.5
1/27/15 75.78
1/28/15 76.24
1/29/15 78
1/30/15 75.91
2/2/15 74.99
2/3/15 75.4
2/4/15 75.63
2/5/15 75.61
2/6/15 74.47
2/9/15 74.44
2/10/15 75.19
2/11/15 76.51
2/12/15 76.23
2/13/15 75.74
2/17/15 75.6
2/18/15 76.71
2/19/15 79.42
2/20/15 79.9
2/23/15 78.84
2/24/15 78.45
2/25/15 79.56
2/26/15 80.41
2/27/15 78.97
3/2/15 79.75
3/3/15 79.6
3/4/15 80.9
3/5/15 81.21
3/6/15 80.01
3/9/15 79.44
3/10/15 77.55
3/11/15 77.57
3/12/15 78.93
3/13/15 78.05
3/16/15 78.07
3/17/15 79.36
3/18/15 80.91
3/19/15 82.75
3/20/15 83.8
3/23/15 84.43
3/24/15 85.31
3/25/15 82.92
3/26/15 83.01
3/27/15 83.3
3/30/15 83.2
3/31/15 82.22
4/1/15 81.67
4/2/15 81.56

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