Question: 1. Consider the one period binomial model we presented in class. Let So K Find Voe, voal n the following scenarios: 100. a) u 1.05,

 1. Consider the one period binomial model we presented in class.

1. Consider the one period binomial model we presented in class. Let So K Find Voe, voal n the following scenarios: 100. a) u 1.05, d 0.98, 0.01,T 1 b) 1.02,d 0.95, 0.01,T2 c) u = 1.05, d = 1.01, r 0.02,T= 1 d) u 1.1, d 0.9, 0,T 3 Verify that put call parity holds in all of the above scenarios 1. Consider the one period binomial model we presented in class. Let So K Find Voe, voal n the following scenarios: 100. a) u 1.05, d 0.98, 0.01,T 1 b) 1.02,d 0.95, 0.01,T2 c) u = 1.05, d = 1.01, r 0.02,T= 1 d) u 1.1, d 0.9, 0,T 3 Verify that put call parity holds in all of the above scenarios

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