Question: 5. CODING THE BINOMIAL TREE (10 POINTS) Write the MALTAB script (function) that implements the Binomial T-period tree model that evaluates the price of a
5. CODING THE BINOMIAL TREE (10 POINTS) Write the MALTAB script (function) that implements the Binomial T-period tree model that evaluates the price of a call option. You are not allowed to use any built-in MATLAB function that evaluates the price of a call option. In particular, your code should start as 1 % This function evaluates the arbitrage-free price of a European call % option in the Binomial tree model 3 % INPUTS % so : stock price at time 0 5suup factor 6 % d : down factor 7ST: number of periods 8 sr interest rate (per period) SKstrike price of the cal 10 % OUTPUT 11 % y : price of the call at time zero 12 13 function y- priceCal1 (so,u,d, T,r,K)
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