compute the price of at-the-money European call and put options as of 01/31/2022 and expiring in 3- months using a 10-period binomial tree

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Learning Goal: I’m working on a finance project and need support to help me learn.1. Download daily closing price data from Yahoo finance for Tesla (ticker:TSLA), Facebook
(ticker:FB) and Amazon (ticker:AMZN) from 01/31/2021 until 01/31/2022. 2. In an Excel spreadsheet , compute daily percentage price
changes for each stock 3. Using the Excel function STDEV.S (or its Python equivalent), compute the standard
deviation of daily returns for each stock. This number represents an estimate of the volatility
per day. In order to obtain an annualized figure, you need to multiply it by √
252, that is:
σannualized =

252σdaily 4. For each stock and using the annualized volatility that you just computed, compute the
price of at-the-money European call and put options as of 01/31/2022 and expiring in 3-
months using a 10-period binomial tree. In your computations, assume that r = 1% per year
with continuous compounding. Remember that none of these companies pay dividends. 5. Save your Excel spreadsheet as .xlsx and upload it to Canvas. If you use a different programming language such as Python or R, please submit your
results as a pdf file and include your code as an appendix. Make sure to include the binomial
trees used in your computations.
1
Requirements: 2 page

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