Q3: Use the Black-Scholes OPM to value a European call given the following information S=91

X-96

o2= 35

annual risk free rate= .045

time to expiration= 9 months

A)3.57 B) 2.75 C)17.61 D)18.25

Q10) The binomial option pricing model is a discrete method for valuing options. True Or False

Q8) when the black-sholes and binomial tree models are used to value an option which of the following is true?

A) binomial model will converage to a price slightly above b/s

B) binomial model will converage to a price slightly below b/s

C) binomial model will converage to the b/s model as the number of ateps increase

D) cannot be determined without knowing characteristics of the stock and the option.

I selected the answer choice C is that correct for Q8?