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Consider the following option Stock price =100 Strike K=95 Volatility =20% Expiry T=3 months Dividend yield =2% Stock expected return =6% Risk free =3%1. Calculate

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Consider the following option Stock price =100 Strike K=95 Volatility =20% Expiry T=3 months Dividend yield =2% Stock expected return =6% Risk free =3%1. Calculate price of European call a. Binomial tree b. Finite difference method c. Black Sholes-Gaussian Distribution d. Black Scholes- Monte Carlo 2. Calculate price of American call

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