Financial Derivatives-Volatility Smile.

 Extra Credit — Volatility Smile Posted Oct 13, 2018 12:26 PM Construct a graph of Implied Volatility against Strike Price using the following information: Underlying Asset: Tesla Call Options with expiration date after November 16, 2018 Use at least 11 different Strike Prices (5 above the current stock price and 5 below) Use the average of bid and ask prices of call option as the price of option Use Excel to compute the number of days from the date you collected the information to expiration day of the options Risk-free rate using treasury instrument with maturity close to that of the options Compute implied volatility using Black-Scholes-Merton Option Pricing Model (should be in the same ball park as those reported by Yahoo)