Problem 6 a Compute the Black Scholes European Call Option and European Put Option price when $10, $8, 2 10 , 3 , 0 , 0 4, 0 Note represents the stocks dividend yield b Compute the Black Scholes European Call Option and European Put Option price when $6, $8, 2 10 , 3 , 0 , 0 4, 0 Note represents the stocks dividend yield c Compute the Black Scholes European Call Option and European Put Option price when $10, $8, 2 10 , 3 , 0 , 0 4, 0 2 Note represents the stocks dividend yield d Compute the Black Scholes European Call Option and European Put Option price when $10, $8, 2 10 , 3 , 0 , 0 4, 0 3 Note represents the stocks dividend yield Compare your answer to a) and c) What happens when the time to expiration decreases e Compute the Black Scholes European Call Option and European Put Option price when $10, $8, 2 10 , 6 , 0 , 1, 0 f Compute the Black Scholes European Call Option and European Put Option price when $10, $8, 2 10 , 6 , 6 , 1, 0 Note represents the stocks dividend yield Compare you answer to e) What happens if the stock pays a dividend

Question

Problem 6  a  Compute the Black Scholes European Call Option and European Put Option price when   $10,   $8, 2   10 ,   3 ,   0 ,   0 4,   0  Note represents the stocks dividend yield  b  Compute the Black Scholes European Call Option and European Put Option price when   $6,   $8, 2   10 ,   3 ,   0 ,   0 4,   0  Note represents the stocks dividend yield  c  Compute the Black Scholes European Call Option and European Put Option price when   $10,   $8, 2   10 ,   3 ,   0 ,   0 4,   0 2  Note represents the stocks dividend yield  d  Compute the Black Scholes European Call Option and European Put Option price when   $10,   $8, 2   10 ,   3 ,   0 ,   0 4,   0 3  Note represents the stocks dividend yield  Compare your answer to a) and c)  What happens when the time to expiration decreases  e  Compute the Black Scholes European Call Option and European Put Option price when   $10,   $8, 2   10 ,   6 ,   0 ,   1,   0  f  Compute the Black Scholes European Call Option and European Put Option price when   $10,   $8, 2   10 ,   6 ,   6 ,   1,   0  Note represents the stocks dividend yield  Compare you answer to e)  What happens if the stock pays a dividend

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Problem 6: a. Compute the Black-Scholes European Call Option and European Put Option price when = $10, = $8, 2 = 10%, = 3%, =

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