Question

Questions should be answered by building a 15-period binomial model whose parameters should be calibrated to a Black-Scholes geometric Brownian motion model with: T=.25 years, S0 = 100, r=2%, sigma σ=30% and a dividend yield of c=1%. Hint Your binomial model should use a value of u = 1.0395... (This has been rounded to four decimal places but you should not do any rounding in your spreadsheet calculations.) Submission Guidelines Round all your answers to 2 decimal places. So if you compute a price of 12.9876 you should submit an answer of 12.99.Compute the fair value of a chooser option which expires after n = 10 periods. At expiration the owner of the chooser gets to choose (at no cost) a European call option or a European put option. The call and put each have strike K = 100 and they mature 5 periods later, i.e. at n = 15.

Answer 1

Answer:

sorry guys sorry this is tooooo big sum

Explanation:

but still mark me as brainliest please