Consider American call options written on S&P 500 etf (SPY). This etf will pay dividends on December 16 th. Therefore, w

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answerhappygod
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Consider American call options written on S&P 500 etf (SPY). This etf will pay dividends on December 16 th. Therefore, w

Post by answerhappygod »

Consider American call options written on S&P 500 etf (SPY).
This etf will pay dividends on December 16 th. Therefore, we will
use BSM formula to price call options maturing on December10 th
(before the next dividend). Go to finance.yahoo, copy and paste the
table with current prices on these options maturing on December
10th to the excel spreadsheet. Consider 10 call options which
differ by their strike prices: 5 options in-themoney and 5 options
out-of-the-money. The difference between two adjacent strike prices
should be $2. Record the time when the prices are downloaded. Make
a table showing the stock (SPY) price, 10 strike prices and
corresponding option prices, where option prices must be equal to
the mean between the bid price and the ask price. Find the
expiration time, T, of the options
please show work in excel format
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