answer please

1. A non-dividend paying stock price is currently $50. Its 1-year expected volatility is 14.3% and the risk-free interest rate is 10% per annum (compounded continuously). a) Use a 1-step binomial tree to find the value of a two-month European call option with a strike price of $497 b) Using the BSM model what is the value of a 2 month European call option on the stock with a strike price of $49? Use the cumulative distribution table, provided in the appendix, or the "-NORM.S.DIST" function in Excel to solve (d) and (d). See end of appendix for examples of how to use the table c) What is the value of a 2-month European put option on the stock with a strike price of $497 d) All else being equal, what happens to the value of a 2-month European call option if the underlying stock price increases by $1? 1. A non-dividend paying stock price is currently $50. Its 1-year expected volatility is 14.3% and the risk-free interest rate is 10% per annum (compounded continuously). a) Use a 1-step binomial tree to find the value of a two-month European call option with a strike price of $497 b) Using the BSM model what is the value of a 2 month European call option on the stock with a strike price of $49? Use the cumulative distribution table, provided in the appendix, or the "-NORM.S.DIST" function in Excel to solve (d) and (d). See end of appendix for examples of how to use the table c) What is the value of a 2-month European put option on the stock with a strike price of $497 d) All else being equal, what happens to the value of a 2-month European call option if the underlying stock price increases by $1