Question: (c) Analyze and interpret all the Greeks. 5. Let's handle an American option. Consider the same underlying asset (MSFT) and an Amer- ican option with

(c) Analyze and interpret all the Greeks. 5. Let's handle an American option. Consider the same underlying asset (MSFT) and an Amer- ican option with a strike price of $ 175.00 expiring on 1/15/2021 and use the annualized standard deviation from problem 2. (a) Compute the values of this American call option with a three-step binomial model. (b) Calculate the value of this option using a nine-step binomial tree. (c) Calculate the call option price using the BS model. (d) Compare all the prices and discuss. (c) Analyze and interpret all the Greeks. 5. Let's handle an American option. Consider the same underlying asset (MSFT) and an Amer- ican option with a strike price of $ 175.00 expiring on 1/15/2021 and use the annualized standard deviation from problem 2. (a) Compute the values of this American call option with a three-step binomial model. (b) Calculate the value of this option using a nine-step binomial tree. (c) Calculate the call option price using the BS model. (d) Compare all the prices and discuss

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