Question: Q 2 . ( 4 0 pt ) Write MATLAB codes to solve the following questions and discuss the answers on your answer sheet in

Q2.(40pt) Write MATLAB codes to solve the following questions and discuss the answers on your answer
sheet in detail. All MATLAB source code files should be provided with your answer sheet. Use the
multiplicative binomial model with the CRR scheme.
1
(a) Plot the following option prices with n =10 : 1000, S0=100,\sigma =0.4, r =0.05, K =110,
T =0.5, and report the prices when n =1000.
Plain vanilla European call option
Plain vanilla American put option
Cash-or-nothing option with cash =10
Asset-or-nothing option with f =0.1

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