10. European option on dividend paying index Write a VBA program to determine the initial price of a European Call and European Put option in a binomial model based on the following data:

S(0) 5 100; K 5 105; T 5 1; r 5 8%; σ 5 30%; div 5 8%; M 5 10 Create function to calculate the option price using the Black
Scholes formula and compare. Now gradually increase the value of M and report the subsequent option prices.

Use the value of u 5 eσ ffiffiffiffi

Δt p and d 5 e2σ ffiffiffiffi

Δt p