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Please solve it in the given excel template and show excel calculations. Options...

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Finance

Please solve it in the given excel template and show excel calculations.

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Options and Futures A. Your employer is offering you stock options on the firm as part of your pay package. You know the following about this offer: Current Stock Price Exercise Price Maturity (yrs) Risk-free Rate Stock Volatility $23 $28 2 2.25% 23% What is the value of the option? Suppose the Fed reduces Treasury rates to 2.0%, what is the new price of the option? After the rate reduction, your company's share price rises to $25, what is the new price of the option? 1 a. Option Pricing Base Fed Price incr 2 3 Exercise price 4 Maturity 5 Stock price 6 Risk free rate 7 Volatility 8 BS calculations: 9 d1 10 N(dl) 11 d2 12 N(2) 13 Price of call #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0

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