Question: Make it in excel and show the way in the question below Use binomial option pricing to price a 3-month European call option with an
Make it in excel and show the way in the question below
Use binomial option pricing to price a 3-month European call option with an exercise price of Rp 200.000 and a share price of Rp 190.000. Use three time periods of one month each and use a monthly 'up-factor' of 1.03. Note that the 'down-factor' is therefore 1/1.03. The risk-free rate of interest is 0.6 per cent per month. Shows the value of options.
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