Use the Black Scholes excel model saved in modules to answer these.

A stock is trading at $70 and does not pay a dividend.

The implied (expected) volatility is 30%.

Interest rates are 4%.

You buy a call with 60 days to expiration and a strike price of $50.

1) How much should the call cost? How much would a put with a strike of $50 cost?

2) What are call and put values if strike price is $60?

3) What if strike price is $60 but the days to expiration drops to 30. What would call and put values be then?

4) What would call and put values be for stike price of $60 with 30 days to expiration and volatility of 50%?

5) If interest rates increase, would you expect the value of the call to go up or down?

6) if the days to expiration increase to 70, assuming all of the original inputs, what would the value of the call increase to?

7) Would theta (time decay) be higher or lower for an option with higher volatility compared to an option with lower volatility?

8) Are call deltas higher for options that are in the money or out of the money?

Need a process that requires calculation