Question: Use Excel or Google Sheets. Get monthly prices on one stock, the current T-bill rate, and the premium, strike, and expiration on at least three
Use Excel or Google Sheets. Get monthly prices on one stock, the current T-bill rate, and the premium, strike, and expiration on at least three options on that stock. Use a binomial model withu,d, andrfrom the data and at least ten periods to price the options. Use the Black-Scholes equation to price the options. Compare these to the actual price of the options.
Numbers and stats can be found on.
fred. stlouisfed. org
finance. yahoo. com
pick any stock you want and the same goes for the rest like T-bill rate etc
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