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What is the implied volatility

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Use the following Call Option Information for parts a-b: Strike (K) is $1.42, Maturity (T) is in 31 trading days (assume 260 trading days in the year), and a discount rate (r) of .0006.

a. What is the implied volatility (standard deviation) if the Spot price (S) is $1.3852 and the Call Premium is $0.01?

b. What is the Call Premium if the Spot price is $1.3891 and the standard deviation is 0.0057?

Reference no: EM132491618

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