Question
Put together a Black-Scholes option calculator in Excel to answer the following: a. What is the call option value with S 0 =$45, K=$48, r=6%,
Put together a Black-Scholes option calculator in Excel to answer the following:
a. What is the call option value with S0=$45, K=$48, r=6%, T=15 months, and volatility=40%?
b. What is the put option value with S0=$60, K=$65, r=6%, T=18 months, and volatility=20%?
c. What is the put option value with S0=$38, K=$40, r=6%, T=3 months, and volatility=60%?
d. What is the call option value with S0=$100, K=$95, r=8%, T=3 years, and volatility=40%?
When I use this formula it doesn't work.
45*NORM.DIST((LN(45/48)+(6%+0.5*40%^2)*15/12)/(40%*SQRT(15/12)),0,1)-48*EXP(-6%*15/12)*NORM.DIST((LN(45/48)+(6%+0.5*40%^2)*15/12)/(40%*SQRT(15/12))-40%*SQRT(15/12),0,1)
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