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    Implied Volatility

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    3. Using the values of St, K, rf , and T specified below, use your spreadsheet and trial and error (or Solver) to estimate the implied volatility (accurate to four decimal places) of a call with a price of $7.2568.

    St = $60.00
    K = $60.00
    rf = 0.02
    T = 0.3333 (3 months).

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    Solution Summary

    Excel SOLVER has been utilized to calculate the value of implied volatility of a call option.

    $2.19