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uestion 1 (30 points) Below is some actual data for call options on Netflix (NFLX) from November 29, 2017. The options expire on January 19,
uestion 1 (30 points) Below is some actual data for call options on Netflix (NFLX) from November 29, 2017. The options expire on January 19, 2018. NFLX's most recent closing price was $190.25, and the 1 month treasury rate (risk free rate) is 1.16% (annualized). There are 34 trading days between November 29 and expiration (assume 252 trading days in the year). Fill in the Implied Volatility column below (you can use the spreadsheet I posted on Blackboard, but I'd encourage you to build your own Black-Scholes-Merton spreadsheet and then use it, it's a good exercise!) Strike Price Option Price Implied Volatility S40.00 $60.00 $105.00 $150.00 $190.00 $230.00 $250.00 $275.00 $300.00 $156.60 $140.25 $90.29 $40.70 $10.43 $0.94 $0.25 $0.10 $0.07 uestion 1 (30 points) Below is some actual data for call options on Netflix (NFLX) from November 29, 2017. The options expire on January 19, 2018. NFLX's most recent closing price was $190.25, and the 1 month treasury rate (risk free rate) is 1.16% (annualized). There are 34 trading days between November 29 and expiration (assume 252 trading days in the year). Fill in the Implied Volatility column below (you can use the spreadsheet I posted on Blackboard, but I'd encourage you to build your own Black-Scholes-Merton spreadsheet and then use it, it's a good exercise!) Strike Price Option Price Implied Volatility S40.00 $60.00 $105.00 $150.00 $190.00 $230.00 $250.00 $275.00 $300.00 $156.60 $140.25 $90.29 $40.70 $10.43 $0.94 $0.25 $0.10 $0.07
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