5 . The excel file HIS prices options provides the daily closing price of Hang Seng Index close price from 1 Feb 2016 to 14 APT 2016 . The PDF files contain the contract specification and closing prices of Hang Seng Index options . Please do the following* using excel spread sheet . a . What is the annualized volatility of Hang Seng Index based on the close prices from Feb 1 to 14 APT 2016 ? ( please use natural log returns to compute ) ( 2 ) b. Use binominal two - step tree , calculate the prices of Hang Seng Index call and put with strike price 20800 , and call and put with strike price 21000 . The options* expire in May 2016 . The C.C. HIBOR is 0. 4%, the c .C . annualized dividend yield is 496 . The SO is the closing price on 14 APT 2016. ( 8) c. Calculate the above options prices using binomial 3 step tree . ( 8 ) J . Calculate the above options prices using Black - Scholes model . ( 4 )