The stats for question 2 are given S(0) = 225, K = 200, r = 3% annual, T = 3 months from now, sigma = 0.2

USE Black Scholes TO FIND VALUES OF CALL AND PUT OPTIONS

Problem 3 Consider the values of the put and call options using the B-S equation for the same stock as in Problem 2, i.e., S(0) = $225, K = $200, r = 3%,T = 3 months from now and with volatility o = 0.2 and no dividends. Compare with results in Problem 2 and comment