Question: Build another Binomial Tree in EXCEL with Market Data: OK, now that you know how to build a tree using market data, do it again!

Build another Binomial Tree in EXCEL with Market Data: OK, now that you know how to build a tree using market data, do it again! Pick your own stock and repeat problem #2. Adjust the length of the tree to roughly match the number of weeks until the maturity date of the options that you choose to price. Here are the restrictions on your stock and options selections. The stock must have options traded on it. We will ignore dividends for this project, but try to select stocks that dont have high dividends or are not scheduled to pay dividends prior to the maturity of the options you are pricing. Pick options that have at least 8 weeks to maturity so that the tree has a reasonable degree of complexity. Price one call and one put with the same maturity but different strike prices. Report the current market price of those options as a benchmark.

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