Q7. On Friday, NOV 2, 2018 stock ACDC was trading for $25/share.

1. ACDCs annual VOL was: = 53%.

2. T-bills traded on NOV 2, 2018 were:

With maturity on TH, DEC 20, 2018, exactly 49 days from today;

With the BID and ASK annual risk-free rates of: RB = 3.19%; RA = 3.16%. These rates were annual rates with a simple compounding.

3. The DEC options expired in 50 days on FR, DEC 21, 2018.

Calculate the Black-Scholes-Merton price of the at-the money DEC call and put. In your calculations, show the use of the INTERPOLATION needed to calculate N(d1) and N(d2).