5. Use the Excel spreadsheet BSMbin7e.xls and determine the value of a call option on a stock...

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5. Use the Excel spreadsheet BSMbin7e.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 num- ber of binomial periods be 1, 5, 10, 25, and 50.

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