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  3. = 2. let s = $100, k $120, 0 = 0.3, i = 0.08. (a).

= 2. Let S = $100, K $120, 0 = 0.3, i = 0.08. (a)...

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Finance

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= 2. Let S = $100, K $120, 0 = 0.3, i = 0.08. (a) Compute the Black-Scholes price on a European call option for t 1, 2 years to maturity. What happens to the option price as t + oo? (b) Compare the call price in (a) with those from Binomial models with h 1, 2

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