Answer to Question #337177 in Financial Math for trish

Question

Using any One of the following packages .Mathematica,

MATLAB ,Microsoft excel and R design and construct a

computer program me that solve the problem given below.

A listed company on the ZSE has the stock price six

months from expiration of

an option as $95, risk free interest rate is 4% per annum

and an exercise price of $90. The volatility is 30% per

annum. Calculate the price of the European put option

using the Black-Scholes option pricing model. Using the

put-call parity relationship, calculate the call price.

Sketch the call and put payoff graphs defined in the

question.

Answer 1

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