risk-free rate

Use the Excel spreadsheet BSMbin8e.xls and determine the value of a call option on a stock currently priced at 165.13, where the risk-free rate is 5.875 percent (annually compounded), the exercise price is 165, the volatility is 21 percent, the option expires in 102 days, and there are no dividends on the stock. Let the number of binomial periods be 1, 5, 10, 25, and 50.

READ ALSO :   Academic help online