Question: Heres a simplified version of exercise 10. Consider an alternative parameterization of the binomial: Construct binomial European call and put option pricing functions in VBA

Here’s a simplified version of exercise 10.

Consider an alternative parameterization of the binomial: Up -Tin R- R-Down R(Up-Down) Down=- To R

Construct binomial European call and put option pricing functions in VBA for this parameterization and show that they also converge to the Black-Scholes formula. (The message here is that the parameterization of the binomial Up and Down is not unique.)

Up -Tin R- R-Down R(Up-Down) Down=- To R

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