Question: The table below gives prices for American Airlines (AMR) options on 12 July 2007. The option with exercise price X = $27.50 is assumed to be the at-the-money option.
a. Compute the implied volatility of each option (use the functions CallVolatility and PutVolatility defined in the chapter).
b. Graph these volatilities. Is there a volatility "smile"?
![970_AMR.png](https://secure.tutorsglobe.com/CMSImages/970_AMR.png)