Implement your formulation in Excel and show formula used.

Consider a stock worth $100 that can go up or down by 20% per period. The risk free rate is 5%. And exercise price is $110. Use one Binomial Option Pricing Methods (both methods - Method 1 (6 steps) and Method 2 (the probability concept) to calculate the call premium METHOD 1 (enter the answer of each step) Step 1 = Step 2 = Step 3 = Step 4 = 1 Step 5 = Premium = 1 METHOD 2 Premium Question 9 10 points) Consider the following binomial option pricing problem. This option has two periods to go before expiring. Its stock price is $65 and its exercise price is $65. The risk-free rate is 5%, the value of u is 1.25 and the value of the d is 0.8. The stock pays dividend at the end of the first period at the rate of 3%. Construct the 2-period Binomial Option Tree model and find the value of both the call and put premiums Consider a stock worth $100 that can go up or down by 20% per period. The risk free rate is 5%. And exercise price is $110. Use one Binomial Option Pricing Methods (both methods - Method 1 (6 steps) and Method 2 (the probability concept) to calculate the call premium METHOD 1 (enter the answer of each step) Step 1 = Step 2 = Step 3 = Step 4 = 1 Step 5 = Premium = 1 METHOD 2 Premium Question 9 10 points) Consider the following binomial option pricing problem. This option has two periods to go before expiring. Its stock price is $65 and its exercise price is $65. The risk-free rate is 5%, the value of u is 1.25 and the value of the d is 0.8. The stock pays dividend at the end of the first period at the rate of 3%. Construct the 2-period Binomial Option Tree model and find the value of both the call and put premiums