Question
Perform instant experiments on whether changing various inputs causes an increase or decrease in the Call Price and in the Put Price and by how
Perform instant experiments on whether changing various inputs causes an increase or decrease in the Call Price and in the Put Price and by how much. (A) What happens when the standard deviation is increased? (B) What happens when the time to maturity is increased? (C) What happens when the exercise price is increased? (D) What happens when the risk-free-rate is increased? (E) What happens when the dividend yield is increased? (F) What happens when the standard deviation is really close to zero? (G) What happens when the time to maturity is really close to zero?
Please compute solution in excel
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