Topic 5: Implied Volatility - The share price of BMW was EUR 58 at 9 Nov 2011. The Eurex showed up following prices for Calls and puts maturing on 20 March 2012. The riskfree rate was 1,7%, there were no dividends to be taken into account. a) Calculate the implied volatility of all corresponding Calls and Puts. Display the result in a chart showing the implied volatilities depending on the strikes and comment the result. Explain the smile-effect. b) Check out the Put-Call-Parity for every option pairs. Topic 5: Implied Volatility - The share price of BMW was EUR 58 at 9 Nov 2011. The Eurex showed up following prices for Calls and puts maturing on 20 March 2012. The riskfree rate was 1,7%, there were no dividends to be taken into account. a) Calculate the implied volatility of all corresponding Calls and Puts. Display the result in a chart showing the implied volatilities depending on the strikes and comment the result. Explain the smile-effect. b) Check out the Put-Call-Parity for every option pairs