Let = $120, = $100, = 30%, = 0, and = 0.08. a. Compute the Black-Scholes call price for 1 year to maturity and for a variety of very long times to maturity. What happens to the price as b. Set r...

Let
= $120,

= $100,

= 30%,
= 0, and
= 0.08.

a. Compute the Black-Scholes call price for 1 year to maturity and for a variety of very long times to maturity. What happens to the price as

b. Set r = 0.001. Repeat (a). Now what happens? What accounts for the difference?