Problem 4 (12 points): Consider a 1-year European call option with a strike price of $4100 on a stock index if the current index value is $4000. The dividends paid by the stock included in the index can be approximated by a continuously compounded dividend yield of 5%. The risk-free interest rate is 8%. The standard deviation of the index value is o=30%. a) (4 points) Find the value of this option using the Cox-Ross-Rubenstein 2-step binomial option pricing model. b) (4 points) Using Excel, find the value of this option using the Cox-Ross-Rubenstein 10-step binomial option pricing model. c) (4 points) Using Excel or any other methods (except option price calculators), find the value of this option using the Black-Scholes model Problem 4 (12 points): Consider a 1-year European call option with a strike price of $4100 on a stock index if the current index value is $4000. The dividends paid by the stock included in the index can be approximated by a continuously compounded dividend yield of 5%. The risk-free interest rate is 8%. The standard deviation of the index value is o=30%. a) (4 points) Find the value of this option using the Cox-Ross-Rubenstein 2-step binomial option pricing model. b) (4 points) Using Excel, find the value of this option using the Cox-Ross-Rubenstein 10-step binomial option pricing model. c) (4 points) Using Excel or any other methods (except option price calculators), find the value of this option using the Black-Scholes model