Question: Please solve using Excel Suppose company A stock is last time traded at 145.28$, and our analysis shows that one year from now, its price

Please solve using Excel

Suppose company A stock is last time traded at 145.28$, and our analysis shows that one year from now, its price would either increase or decrease by 15%. (i.e. d=0.85, u=1.15) Assume that the risk-free rate is 4.5% and the company pays no dividend in this time period. 4) Calculate the risk-neutral probabilities and for stock A. 5) Using the risk-neutral probabilities, calculate the put option price. 6) Using the risk-neutral probabilities, calculate the price of a call option with the same exercise price and time to maturity.

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