Answer the following questions given the following call option prices on Google

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Answer the following questions given the following call option prices on Google (GOOG) and on Apple (APPL). Note that these are actual option prices on 2/21/13 and these contracts have 60 days till expiration. The 2-month T-bill rate is about 4.75%. Attach all work with your report. OPTION STRIKE EXP VOL LAST GOOG 800 Apr 378 28.20 S=795.53 690 Apr 53 101.57 APPL 450 Apr 530 18.55 S=446.06 480 Apr 856 7.81 Part One 1. Estimate the theoretical option values for the call on GOOG with K =800 and for the call on APPL with K = 450 using the Black-Scholes-Merton and Binomial Models program (available under doc sharing) 2. When estimating the option values assume various standard deviations of returns of 10%, 15%, 20%,

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