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please answer in excel A call option on AMZN exists with the following characteristics: - 1/21/22 expiration from today (12/8/21) - Current stock price is
please answer in excel
A call option on AMZN exists with the following characteristics: - 1/21/22 expiration from today (12/8/21) - Current stock price is $3505.49 - Exercise price is $3510 interest rate is 2.5% - stock's volatility is 35%. - a. Find the call option price using Black-Scholes model. b. Make a table showing the option's price using BS model and intrinsic value for stock prices range from $215, $220 .... $255, $260, $265, etc. c. Create a graph of the data toble you created in b. d. Do a search for this option online and compare to your calculation. Is your option calculation similar to the actual price? Why or why not? e. How much would a straddle on this option cost? (assume same variables in original problem for both options and show your work!) Step by Step Solution
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