Question: I need help solving this on excel.. Thank you :) 1. Binomial option pricing: Use the binomial option pricing model to calculate the price of
I need help solving this on excel.. Thank you :)
1. Binomial option pricing: Use the binomial option pricing model to calculate the price of a 12 month call using the following data : a. Up move expected Down move expected Initial Share Price Risk-free Interest Rate Exercise Price 12% -6% 50 4% 50 b. Use put-call parity to calculate the price of the matching put (i.e. at the same strike price). What would be the price of the $55 call? C
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