Problem 16-06 Suppose the current value of a popular stock index is 650.50 and the dividend yield on the index is 3.0%. Also, the yield curve is flat at a continuously compounded rate of 6.5%. a. If you estimate the volatility factor for the index to be 16%, use the Black-Scholes model to calculate the value of an index call option with an exercise price of 664 and an expiration date in exactly three months. You may use Appendix D to answer the question. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. If the actual market price of this option is $19.10, calculate the implied volatility coefficient. Do not round intermediate calculations. Round your answer to two decimal places. Standard Normal Prohahilities Problem 16-06 Suppose the current value of a popular stock index is 650.50 and the dividend yield on the index is 3.0%. Also, the yield curve is flat at a continuously compounded rate of 6.5%. a. If you estimate the volatility factor for the index to be 16%, use the Black-Scholes model to calculate the value of an index call option with an exercise price of 664 and an expiration date in exactly three months. You may use Appendix D to answer the question. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. If the actual market price of this option is $19.10, calculate the implied volatility coefficient. Do not round intermediate calculations. Round your answer to two decimal places. Standard Normal Prohahilities