Question: Consider a model for a security with time zero value S0 = 150, a yearly effective interest rate of .01% and volatility ^2 = (.02)^2

Consider a model for a security with time zero value S0 = 150, a yearly effective interest rate of .01% and volatility ^2 = (.02)^2 . Implement a binomial model to price option in python.

1. Price a European Call Option with expiry T = 1/2 and T = 1 years and strike price X = 150. Carry out the binomial model in N = 50, N = 100 and N = 500 steps. Compare the values calculated with the solution of the Black - Scholes model.

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