Question: Implement the one-period binomial option pricing model to price a call and a put option with a strike of $25 on a share of stock

  1. Implement the one-period binomial option pricing model to price a call and a put option with a strike of $25 on a share of stock that is expected to move 15% in both up and down directions in the next period. The stocks current price is $24. Assume the single-period interest rate is 4%.

  1. Implement the two-period binomial option pricing model to price a call and put option with the following inputs: u=0.15, d=-0.15, K=25, r=4%. The stocks current price is $24.

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