ON exail - Meta stocks option

Refer to assignment #1 to compute a call option price for 9 different scenarios. Present your findings in a 3 by 3 matrix form. Rows for strike prices, and columns for times to option expiration. Steps 1. Compute the daily returns standard deviation using Excel built in standard deviation function 2. Annualize the standard deviation by multiplying daily standard deviation by square root of 250 3. Find d1 and d2 for each scenario (reminder: you will be working on 9 scenarios to find 9 different call option prices) 3. Refer to the standard normal distribution table or utilize the norm.dist function in Excel to find the values of the cumulative normal distribution function correspond to both d1 and d2. At this stage, you should have N(d1) and N(d2) for each scenario as you are plugging in 9 different combinations for strike price K and time to expiration t 4. Final step: plug in the values of N(d1) and N(d2) into the Black, Scholes and Merton call option pricing model 5. Present your 9 call option prices in a 3x3 matrix form Notes: Strike prices 1. 5% below most recent closing price of the underlying stock 2. $10 below 3. 8% below Time to expiration 1. 30 days 2. 60 days 3. 90 days

*** 3 different strike prices and 3 different times to expiration form entries for a 3X3 matrix