Use the BSOPM to value a January 17, 2020 call option on Electronic Arts, (stock symbol EA). On Nov. 20" (at 12:30 pm) with a strike price of 90, a current stock price of 97.93, and a risk free rate of 1.55 % per annum (3 month yield from Bloomberg), calculate the value of the call in steps as listed below. (Since the option expires Jan 17th, assume there are 40 trading days) 1) (8 points) Turn in a spreadsheet to calculate the volatility of the underlying stock. (See the note below). (Note: to calculate volatility, use daily historical returns for 91 trading days starting with Nov. 19 and before. On Yahoo finance, download the historical prices into a spreadsheet, and then calculate return relatives. Then, follow the procedure in the textbook to get the annual standard deviation of log returns. You may use NORMSDIST on excel to get N(dl) and N(D2) for the BSOPM, and STDEV to get the standard deviation of log returns. 2) (18 points) Show all of your work and calculate the value of this stock option using the BSOPM. Show all steps handwritten or typed. You may set up a formula in Excel to calculate the value, but I want to see all steps written or typed out for the calculations. 3) (5 points) The value of the option with 40 days remaining was actually selling for approximately $9.55 (bid) and $9.75 (ask price). Did you get close? Why might it be different? 4. (19 points) The implied volatility was 30.74%. If you plug this in and recalculate, what is the new value of the option? Did this get you closer to the actual prices? Use the BSOPM to value a January 17, 2020 call option on Electronic Arts, (stock symbol EA). On Nov. 20" (at 12:30 pm) with a strike price of 90, a current stock price of 97.93, and a risk free rate of 1.55 % per annum (3 month yield from Bloomberg), calculate the value of the call in steps as listed below. (Since the option expires Jan 17th, assume there are 40 trading days) 1) (8 points) Turn in a spreadsheet to calculate the volatility of the underlying stock. (See the note below). (Note: to calculate volatility, use daily historical returns for 91 trading days starting with Nov. 19 and before. On Yahoo finance, download the historical prices into a spreadsheet, and then calculate return relatives. Then, follow the procedure in the textbook to get the annual standard deviation of log returns. You may use NORMSDIST on excel to get N(dl) and N(D2) for the BSOPM, and STDEV to get the standard deviation of log returns. 2) (18 points) Show all of your work and calculate the value of this stock option using the BSOPM. Show all steps handwritten or typed. You may set up a formula in Excel to calculate the value, but I want to see all steps written or typed out for the calculations. 3) (5 points) The value of the option with 40 days remaining was actually selling for approximately $9.55 (bid) and $9.75 (ask price). Did you get close? Why might it be different? 4. (19 points) The implied volatility was 30.74%. If you plug this in and recalculate, what is the new value of the option? Did this get you closer to the actual prices