Question: Background: You should build a 15-period binomial model whose parameters are calibrated to a Black. Scholes geometric Brownian motion model with: T=0.25 years, S0=100,r=2%,=30% and

Background: You should build a 15-period binomial model whose parameters are calibrated to a Black. Scholes geometric Brownian motion model with: T=0.25 years, S0=100,r=2%,=30% and a dividend yield of e=1%. Your binomial model should use a value of u=1.0395 (This has been rounded to four decimal places but you should not do any rounding in your spreadsheet calculations.) Compute the price of an American call option with strike K=110 and maturity T=.25 years. Round all your answers to 2 decimal places. So if you compute a price of 12.9976 you should submit an anwwer of 12.99. 305 lncerrect

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