8. Using GARCH parameters =0.00001524,=0.1883, =0.7162, =0, and a =0.007452, simulate the GARCH option price with

8. Using GARCH parameters ω=0.00001524,α=0.1883, β=0.7162, θ =0, and a λ=0.007452, simulate the GARCH option price with a strike price of 100 and 20 days to maturity. Assume r =0.02/365 and assume that today’s stock price is 100. Assume today’s variance is 0.00016. Compare the GARCH price with the BSM price using a daily variance of 0.00016 as well.