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What drives option prices? Use the data below to calculate the price of the put and call on this stock. Create a series of one-way

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What drives option prices? Use the data below to calculate the price of the put and call on this stock. Create a series of one-way data tables that show the sensitivity of the call and put prices to 50,X, T,r, and sigma. Graph the data. s X T r Sigma 50 Current stock price 50 Exercise price 0.50 Time to maturity of option (in years) 3.00% Risk-free rate of interest 25% Stock volatility d. d To solve for the option prices you can type out the formulas, use the "dOne" or "calloption" (and "putoption") functions from the notes, or create your own function. You will need to paste the function code into a "Module" in the VBA window! Nd.) N(d) Call price Put price

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