Question: 1.Using the information in this module, please compute the two-step binomial model price of a European Call Option (BY HAND) with the following characteristics: S

1.Using the information in this module, please compute the two-step binomial model price of a European Call Option(BY HAND)with the following characteristics:

S = 50K = 50Sigma = 30%r = 1.00%T = 6 monthsD = 0

Please draw out the "tree" used in your calculation, scan or take a picture of this document, and upload.

2.For the same option, have a spreadsheet that calculates the binomial modeloption price. Please verify that the price is similar to the one you obtained in Part 1 of this assignment.

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