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18. Above procedure of trying to guess the right mumber by changing the parameters of an equation is called "numerical approach" of finding an answer. Using this approach, what are the implied volatilities of Tesla using following call options prices? Strike Price Call Premium 550 $119.98 650 $78.78 700 $64.40 800 $42.63 900 $29.97 1000 $24.44 Plot the calculated implied volatilities on strike price - implied volatility plane and draw a graph by connecting plots. Make the horizontal axis represent "Strike Price" and vertical axis "Implied Volatility". Use points calculated (for strike price 550, 600, 650, 700, 800, 900, 1000) Direction: Please answer following questions with clearly and legibly written final answers. An answer from previous question will be needed to answer the question that follows. You may write down your steps for partial credit, but they are not required. No penalty will be given for attempts. Using powerful mathematical statistical tool such as financial calculator or Excel spreadsheet is strongly recommended. Consider following listing of call option on Tesla on Yahoo! Finance (Real quotes used). Current Price: $580 Strike Price: $600 Risk-free Rate: 3.1% Time to Expiration: 6 months (0.5 year) Call Premium $95.06 Dividend Yield 0% 17. What is the implied volatility of above listed call option? (hint use the excel file I have uploaded on icollege, Instead of solving the algebraic equation of Black-Scholes, try to manipulate around volatility number to find the volatility that results in the given call price) 18. Above procedure of trying to guess the right number by changing the parameters of an equation is called "numerical approach" of finding an answer. Using this approach, what are the implied volatilities of Tesla using following call options prices? 18. Above procedure of trying to guess the right number by changing the parameters of an equation is called "mumerical approach" of finding an answer. Using this approach, what are the implied volatilities of Tesla using following call options prices? Strike Price 550 650 700 800 900 1000 Call Premium $119.98 $78.78 $64.40 $42.63 $29.97 $24.44 19. Plot the calculated implied volatilities on strike price - implied volatility plane and draw a graph by connecting plots. Make the horizontal axis represent "Strike Price and vertical axis "Implied Volatility": Use points calculated (for strike price 550, 600, 650, 700, 800, 900, 1000) 18. Above procedure of trying to guess the right mumber by changing the parameters of an equation is called "numerical approach" of finding an answer. Using this approach, what are the implied volatilities of Tesla using following call options prices? Strike Price Call Premium 550 $119.98 650 $78.78 700 $64.40 800 $42.63 900 $29.97 1000 $24.44 Plot the calculated implied volatilities on strike price - implied volatility plane and draw a graph by connecting plots. Make the horizontal axis represent "Strike Price" and vertical axis "Implied Volatility". Use points calculated (for strike price 550, 600, 650, 700, 800, 900, 1000) Direction: Please answer following questions with clearly and legibly written final answers. An answer from previous question will be needed to answer the question that follows. You may write down your steps for partial credit, but they are not required. No penalty will be given for attempts. Using powerful mathematical statistical tool such as financial calculator or Excel spreadsheet is strongly recommended. Consider following listing of call option on Tesla on Yahoo! Finance (Real quotes used). Current Price: $580 Strike Price: $600 Risk-free Rate: 3.1% Time to Expiration: 6 months (0.5 year) Call Premium $95.06 Dividend Yield 0% 17. What is the implied volatility of above listed call option? (hint use the excel file I have uploaded on icollege, Instead of solving the algebraic equation of Black-Scholes, try to manipulate around volatility number to find the volatility that results in the given call price) 18. Above procedure of trying to guess the right number by changing the parameters of an equation is called "numerical approach" of finding an answer. Using this approach, what are the implied volatilities of Tesla using following call options prices? 18. Above procedure of trying to guess the right number by changing the parameters of an equation is called "mumerical approach" of finding an answer. Using this approach, what are the implied volatilities of Tesla using following call options prices? Strike Price 550 650 700 800 900 1000 Call Premium $119.98 $78.78 $64.40 $42.63 $29.97 $24.44 19. Plot the calculated implied volatilities on strike price - implied volatility plane and draw a graph by connecting plots. Make the horizontal axis represent "Strike Price and vertical axis "Implied Volatility": Use points calculated (for strike price 550, 600, 650, 700, 800, 900, 1000)