Two-Period Binomial Option Valuation Model "Congratulations! Your call option from the previous section paid off! However you are now worried that the stock of Dunder Mifflin, Inc (DNDY) will fall given the erractic personality of DNDY's new CEO, Robert California. Therefore, you are interested in buying a put option on DNDY. Assume DNDY is now trading at $30 per share. Assume from one period to the next the stock could increase by 10% or decrease by 25%. The risk free rate is 2%. Use this information to answer the questions in this section. Assume you are using a two- period binomial option valuation model." Question 8 (5 points) What is the value of the call option in each of the four end states (p++, p+-, P-+, and p--)? Op++ = $0.00, P+- = $5.25, p-+ = $5.25, p-- = $13.125 = Op++ = $6.30, p+- = $5.25, p-+ = $5.25, p-- = $13.125 = Op++ = $0.00, P+- = $5.25, p-+ = $6.25, p-- = $13.125 = = Two-Period Binomial Option Valuation Model "Congratulations! Your call option from the previous section paid off! However you are now worried that the stock of Dunder Mifflin, Inc (DNDY) will fall given the erractic personality of DNDY's new CEO, Robert California. Therefore, you are interested in buying a put option on DNDY. Assume DNDY is now trading at $30 per share. Assume from one period to the next the stock could increase by 10% or decrease by 25%. The risk free rate is 2%. Use this information to answer the questions in this section. Assume you are using a two- period binomial option valuation model." Question 8 (5 points) What is the value of the call option in each of the four end states (p++, p+-, P-+, and p--)? Op++ = $0.00, P+- = $5.25, p-+ = $5.25, p-- = $13.125 = Op++ = $6.30, p+- = $5.25, p-+ = $5.25, p-- = $13.125 = Op++ = $0.00, P+- = $5.25, p-+ = $6.25, p-- = $13.125 = =