Estimate the historical volatility of a stock using the
following data. The data show the stock price at the end of each of
week over ten consecutive weeks.
12.0, 13.3 11.2, 12.0, 12.7, 13.1, 13.3, 14.5, 14.9, 14.1
2. What is the Black-Scholes-Merton price of a European call
option when the stock price is $75, the strike price is $80, the
risk-free rate is 2% (based on continuous compounding), the
volatility is 50% and the time to expiration is...