Please help me solve this assignment in EXCEL FORMAT. If you could provide STEP$-$BY$-$STEP INSTRUCTIONS of how to input each piece of the problem into an excel file $(5$ worksheets for each answer for example$)$ that I could follow along to$,$ I$\text{'}$d very much appreciate that. If you can create a solved excel file that I could download that would also work as well, but most importantly, I need to see exactly how to do it on excel so I could do it myself. Very important! Thank you!!!!

Problem $2$:

Consider the following policy for hedging. Let $R_0$ be its return $($net present value$).$ If the price of the

stock increases more than $3$ percent in the first six months, buy a European call option for the next six

months. Otherwise, buy a European put option for the next six months. Set the exercise price of the put

option at $$97$ and assume the price of the put option is $$2\mathrm{.}35.$ Assume the cost of the call option is $$3\mathrm{.}40,$

and sample size $N=1000.$ Use the following parameters for the geometric random walk model for the

stock price movement.

SO$=100$;$\%$Current Price S$0$

m$=0\mathrm{.}08$; $\%$Drift m

s$=0\mathrm{.}1$; $\%$Volatility s

T$=0\mathrm{.}5$; $\%$Expiration Time T

Dt$=0\mathrm{.}5$; $\%$Time interval for observing stock price

r$=0\mathrm{.}059$; $\%$Risk$-$free Rate r

Kp$=97$; $\%$Exercise Price K for put option

ic$=0\mathrm{.}03$; $\%$Percentage increase for call option

Kc$=103$; $\%$Strike price for call option

cc$=3\mathrm{.}4$; $\%$Price of a call option

cp$=2\mathrm{.}35$; $\%$Price of a put option

$1.$ What is the distribution $($histogram$)$ of $R_0?$ Compute the relative frequency of $R_0$ based on the

simulated sample, and graph the histogram.

$2.$ What is the expect return of the hedging strategy? And its $90\%$ confidence interval?

$3.$ What is the probability that What is the probability that $1?$

$4.$ What $is$ the probability $of$ purchasing a put option $in$ a year?

Please help me solve this assignment in EXCEL FORMAT. If you could provide STEP$-$BY$-$STEP INSTRUCTIONS of how to input each piece of the problem into an excel file $(5$ worksheets for each answer for example$)$ that I could follow along to$,$ I$\text{'}$d very much appreciate that. If you can create a solved excel file that I could download that would also work as well, but most importantly, I need to see exactly how to do it on excel so I could do it myself. Very important! Thank you!!!!