Calculate three step Binomial tree call option price please. Stock price = 124.2862, Strike price =...

Calculate three step Binomial tree call option price please.

Stock price = 124.2862, Strike price = 120, Volatility = 20%, Interest rate= 0.15%, Days to expiration = 247 days / 365 days Thank you so much

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Expert Solution

The question pertains to calulation of call option price using a binomial tree.

The solution is as follows:

Thus, The option price is 19.47$.

jeff jeffy answered 1 year ago

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