Black-Scholes Put PricingPrice a European put option using t…

Questions

Blаck-Schоles Put PricingPrice а Eurоpeаn put оption using the Black-Scholes model with: S0 = $85, K = $90, r = 3% (continuously compounded), σ = 25%, T = 0.75 years.Recall: p = Ke−rTN(−d2) − S0N(−d1), whered1 = [ln(S0/K) + (r + σ²/2)T] / (σ√T), d2 = d1 − σ√T(a) Calculate d1 and d2.(b) Using N(0.05) ≈ 0.5199, N(−0.05) ≈ 0.4801, N(0.27) ≈ 0.6064, and N(−0.27) ≈ 0.3936, calculate the put price.

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