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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.

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