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Using the Black-Scholes option pricing formula, pick and price two of the options you obtained quotes for above Use . 0 22.-001, and covert T

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Using the Black-Scholes option pricing formula, pick and price two of the options you obtained quotes for above Use . 0 22.-001, and covert T (time to maturity) into years by assuming 250 (trading) days in a year. Make a few comments on what you observe about your prices and the quoted prices, keeping in mind that the quoted prices are for Scholes formula is meant for European-type options options and Black- twe options find in yahoo finance: Calls for November 2,2018 Contract Name Last Trade Date Strike Last Price Bid Ask Change % ChangeVolume Openiterest Implied Volatility IBM181102C00141000 2018-10-12 11:47PM EDT 141.00 4.05 4.15 4.40 +3.75 +100.00% 48 33.19% Puts for November 2,2018 Contract Name Last Trade Date Strike Last Price Bid Ask Change % Change wume Open interest Implied Volatility IBM181 102P001 20000 2018-10-122:43PM EDT 120.00 0.41 0.22 0.34 +0.24+141.18% 14 42.82% Using the Black-Scholes option pricing formula, pick and price two of the options you obtained quotes for above Use . 0 22.-001, and covert T (time to maturity) into years by assuming 250 (trading) days in a year. Make a few comments on what you observe about your prices and the quoted prices, keeping in mind that the quoted prices are for Scholes formula is meant for European-type options options and Black- twe options find in yahoo finance: Calls for November 2,2018 Contract Name Last Trade Date Strike Last Price Bid Ask Change % ChangeVolume Openiterest Implied Volatility IBM181102C00141000 2018-10-12 11:47PM EDT 141.00 4.05 4.15 4.40 +3.75 +100.00% 48 33.19% Puts for November 2,2018 Contract Name Last Trade Date Strike Last Price Bid Ask Change % Change wume Open interest Implied Volatility IBM181 102P001 20000 2018-10-122:43PM EDT 120.00 0.41 0.22 0.34 +0.24+141.18% 14 42.82%

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