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Relationship between interest rate and the call value

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Use the BMS Excel spreadsheet to compute the price of a Black-Scholes call for a range of interest rates from 1% to 20%, with 1% increment. Use the following parameters: S = 30, K = 33, T = 3, σ = 0.3, and q = 0. Plot the relationship between interest rate and the call value. What inference can you draw from here?

Reference no: EM133056544

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