Give s0100 initial stock price k106 strike price tt1 year, Ask an Expert

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Give S₀=100 (initial stock price), K=106 (strike price), T=t=1 (year) and r=0.03 (interest rate), use the Black Scholes formula to price a call option C_k for the volatility values w_n=0.06n (2≤n≤6). Use these five observations to plot a graph of C versus w.

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Financial Management, Finance

Category:- Financial Management
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