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PLEASE SHOW ON EXCEL ALONG WITH FORMULAS 10. A stock is selling today for $30. The...

PLEASE SHOW ON EXCEL ALONG WITH FORMULAS

10. A stock is selling today for $30. The stock has an annual volatility of 70 percent and the annual risk-free rate is 11 percent. 7

a. Calculate the fair price for a 9 month European call option with an exercise price of $25.

b. Calculate the intrinsic value for a 9 month European call option with an exercise price of $25.

c. Calculate the time value for a 9 month European call option with an exercise price of $25.

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