Question: how do you get these numbers? show work! how did they get the numbers in the boxes specifically Homework 5 Consider an American call with

how do you get these numbers? show work! how did they get the numbers in the boxes specifically

Homework 5 Consider an American call with 2 months to expiration. The stock price is 40. Strike price is 35. Risk-free rate is 5%. The volatility o = 40%. What is the value of the call assuming there are two time steps-i.e., At = 1 month. Complete the nodes in the binomial tree. u 1. 1224 d = 0.8909 50.391 15.391 p=.4892 44.896 10.042 40.000 5.000 40.00 6.131 35.638 2.436 31.752 0.000 8

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