Compute and graph the time value decay

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Reference no: EM131324200

Using the Black-Scholes-Merton model, compute and graph the time value decay of the October 165 call on the following dates: July 15, July 31, August 15, August 31, September 15, September 30, and October 16.

Assume that the stock price remains constant. Use the spreadsheet to find the time value in all of the cases.

Reference no: EM131324200

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