3. Use the following data on April 3, 2020. Compare the IVM (Implied Volatility), DL (Delta). and GL (Gamma), VL (Vega), and TL (Theta) for the June 19, 2020 Expiry Microsoft Call Options with YOUR calculated values based on the last traded price (Last). The R given in the quote table is the annualized risk-free rate in %. Last Vol MSFT US $ ( 153.83 -1.43 0153.82 /153.90B 93x1 ... On 03 Apr d Vol 41,243,284 O 155.10K H 157.38Q L 152.19Z Val 6.372B 4 MSFT US Equity 95) Actions 96) Export 97) Settings Option Monitor ...MICROSOFT CORP 153.83 -1.43 -921% 153.82/153.90 Hi 157.38 LO 152.19 Volm 41243284 HV 100.83 Center 153.83 Strikes 7 Exp 19-Jun-20- Exch US Composite 92) 04/24/20 E | ERN >> Calc Mode As of 8D Center Strike 87 Calls/Puts Calls 84 Puts 89 Term Structure 87 Moneyness Strike Calls Ticker Bid Ask Volm Oint IMM DL 7 19-Jun-20 (75d); CSize 100; R 1.30 140.00 MSFT 6/19/20 C140 20.757 21.857 20.907 9251 49.74 20154 .2456 145,00 MSFT 6/19/20 C145 17.45V 18.20 18.157 7076 47.68 20171 150.00 MSFT 6/19/20 C150 14.25y 15.00 14.SOY 13277 45.71 .2740 155.00 MSFT 6/19/20 C155 11.407 12.154 13.98 2798 160.00 9MSFT 6/19/20 C160 9.00 9.457 9.407 11661 42.23 0202 2759 ..0777 165.00 MSFT 6/19/20 C165 6.80Y 7.357 7.007 10792 .2649 -_0720 170.00 MSFT 6/19/20 C170 4.907 5.Soy 5.154 16071 39.15 .0192 ..0647 7- 17-Jul-20 (1030): CSize 100: R 1.36 140.00 MSFT 7/17/20 C140 21.90y 23.00 24. SOY 46.51 -.0645 145.00 9MSFT 7/17/20 C145 18.20 19.654 18.754 1342 .0154 150.00 10 MSFT 7/17/20 C150 15.5oy 15,857 2109 43.24 0163 0675 155.00 10 MSFT 7/17/20 C155 12.75y 13.70Y 2094 41.98 0174 3266 0665 160.00 13 MSFT 7/17/20 C160 10.507 10.82 40.95 .0180 2247 0646 165.00 MSFT 7/17/20 C165 8.307 8.907 8 SOY 39.65 ..0190 0598 170.00 19 MSFT 7/17/20 C170 6,407 6.90 6.624 6277 38.26 20179 .3019 - 0563 .0185 40.83 .0202 45.13 3079 .0672 2785 3151 4. The Bloomberg theoretical price for Tesla options are given below as of April 3, 2020. For the June 19, 2020 call option, with strike price 475, the theoretical option price is $80. Use Black- Scholes-Merton model and compute the option price for this option. How does it compare with the estimate given by Bloomberg? TESLA INC Equity O MON -Related Functions Menu Message * C: 2 TSLA US $ ( 480.01 +25.54 w X479.54 480.00P 1x6 ...... On 03 Apr d Vol 22,562,076 0 509.50K H 515.49D L 468.39D Val 11.027B TSLA US Equity 95 Actions 96) Export 97) Settings Option Monitor ...TESLA INC 4 80.01 25.54 5.61978 479.54/480.00 Hi 515.49 LO 468.3901 Volm 22562076 HV 140.41 Center 480.01 Strikes 5 Exp 17-Apr-20 Exch US Composite/ 92 04/24/20 E | ERN Calc Mode As of > Calc Mode As of 8D Center Strike 87 Calls/Puts Calls 84 Puts 89 Term Structure 87 Moneyness Strike Calls Ticker Bid Ask Volm Oint IMM DL 7 19-Jun-20 (75d); CSize 100; R 1.30 140.00 MSFT 6/19/20 C140 20.757 21.857 20.907 9251 49.74 20154 .2456 145,00 MSFT 6/19/20 C145 17.45V 18.20 18.157 7076 47.68 20171 150.00 MSFT 6/19/20 C150 14.25y 15.00 14.SOY 13277 45.71 .2740 155.00 MSFT 6/19/20 C155 11.407 12.154 13.98 2798 160.00 9MSFT 6/19/20 C160 9.00 9.457 9.407 11661 42.23 0202 2759 ..0777 165.00 MSFT 6/19/20 C165 6.80Y 7.357 7.007 10792 .2649 -_0720 170.00 MSFT 6/19/20 C170 4.907 5.Soy 5.154 16071 39.15 .0192 ..0647 7- 17-Jul-20 (1030): CSize 100: R 1.36 140.00 MSFT 7/17/20 C140 21.90y 23.00 24. SOY 46.51 -.0645 145.00 9MSFT 7/17/20 C145 18.20 19.654 18.754 1342 .0154 150.00 10 MSFT 7/17/20 C150 15.5oy 15,857 2109 43.24 0163 0675 155.00 10 MSFT 7/17/20 C155 12.75y 13.70Y 2094 41.98 0174 3266 0665 160.00 13 MSFT 7/17/20 C160 10.507 10.82 40.95 .0180 2247 0646 165.00 MSFT 7/17/20 C165 8.307 8.907 8 SOY 39.65 ..0190 0598 170.00 19 MSFT 7/17/20 C170 6,407 6.90 6.624 6277 38.26 20179 .3019 - 0563 .0185 40.83 .0202 45.13 3079 .0672 2785 3151 4. The Bloomberg theoretical price for Tesla options are given below as of April 3, 2020. For the June 19, 2020 call option, with strike price 475, the theoretical option price is $80. Use Black- Scholes-Merton model and compute the option price for this option. How does it compare with the estimate given by Bloomberg? TESLA INC Equity O MON -Related Functions Menu Message * C: 2 TSLA US $ ( 480.01 +25.54 w X479.54 480.00P 1x6 ...... On 03 Apr d Vol 22,562,076 0 509.50K H 515.49D L 468.39D Val 11.027B TSLA US Equity 95 Actions 96) Export 97) Settings Option Monitor ...TESLA INC 4 80.01 25.54 5.61978 479.54/480.00 Hi 515.49 LO 468.3901 Volm 22562076 HV 140.41 Center 480.01 Strikes 5 Exp 17-Apr-20 Exch US Composite/ 92 04/24/20 E | ERN Calc Mode As of