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Intrinsic Value vs. Price Use Solver or Goal Seek to find the So for which there is the maximum difference between the Black-Scholes call option
Intrinsic Value vs. Price Use Solver or Goal Seek to find the So for which there is the maximum difference between the Black-Scholes call option price and the option's intrinsic value. A data table and a graph might help you see what's going on here. Why do you think the maximum is where it is? ANSWER 45 S. T r Sigma 45 1.00000 5.00% 40% d. dz Again, use tever lution strategy for the call option price that works for you. N(d) N(dz) Call price Option intrinsicvalue
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