Question 1 Write an excel spread-sheet to calculate the following 2-step binomial pricing model in (a). Write the sheet so it can be modified for part (b) (a) r=12% T=0.25 years u=1.1 d=0.9 S_0=20 Call with strike K=21 (see Hull Week 8 p247). (b) r=12% T=0.25 years u=1.1 d=0.9 S_0=20 Put with strike K=21. (c) Verify put-call parity holds. Here ud are the proportional up and down factors of the share price at each step in your binomial tree. In your report write the recursion relationship you use 6 times in part (a) and (b) and show a compact screen grab of your numerical answers to (b) (using the FORMULATEXT command to show your formula.) Question 1 Write an excel spread-sheet to calculate the following 2-step binomial pricing model in (a). Write the sheet so it can be modified for part (b) (a) r=12% T=0.25 years u=1.1 d=0.9 S_0=20 Call with strike K=21 (see Hull Week 8 p247). (b) r=12% T=0.25 years u=1.1 d=0.9 S_0=20 Put with strike K=21. (c) Verify put-call parity holds. Here ud are the proportional up and down factors of the share price at each step in your binomial tree. In your report write the recursion relationship you use 6 times in part (a) and (b) and show a compact screen grab of your numerical answers to (b) (using the FORMULATEXT command to show your formula.)