Question: Urgent! Please give me the full codes for the question Will upvote correct answers! You can solve the following problems manually, but you are encouraged

Urgent! Please give me the full codes for the question Will upvote

Urgent! Please give me the full codes for the question

Will upvote correct answers!

You can solve the following problems manually, but you are encouraged to use Python, MATLAB, Excel or any other programming languages. 4. Consider pricing a 6m-maturity call and put option on one unit of the 1yr-maturity zero-coupon bond for the strike price of $975 under the Ho-Lee model rt=t+tB, with t=0.5,=0.0,=0.01 and r0=r^(21)=0.0525. Here, B takes \pm 1 with equal probabilities of 50%. In addition, the one-year zero-coupon rate (for semiannual compounding) is r^(1)=0.055. 4.1. (4) Calculate the risk neutral probabilities (q,1q). 4.2. (4) Calculate the call option price and hedge ratio. 4.3. (4) Calculate the put option price and hedge ratio

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