Formula to price call option ck for the volatility values

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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.

Reference no: EM131336160

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