96 97 F) 98 99 100 101 102 103 P= 104 105 106 107 108 109 Present value of riskless payoff = 110 111 Vc= 112 Portfolio payoff Portfolio payoff Now use the binomial option pricing model in conjunction with the following data to value a call option: Current stock price, P = Risk-free rate, Strike price, X = Up factor for stock price, u = Down factor for stock price, d = Years to expiration, t = $25.00 2% $20.00 1.2 0.8 1 E) Calculate the stock price using the binomial model and find the option payoff in each case, in addition to the value of Ns (10 points) F) Calculate the portfolio payoff in each case and find the present value of the payoff, in addition to the value of the call option (10 Points) NOTE: Make sure you reference cells or numbers in your Excel file. Do not simply type in the final answers. Points will be deducted if work (i.e., referencing cells) is not shown.