QUESTION 22

1. Assuming the same variables for Netflix stock as in the BS question, create a binomial pricing tree for a call option on Netflix with three nodes beyond today. The time step is 10 days.

   The stock is currently trading at $309.51, the strike price is $312.50, the risk free rate is 1.89% and the volatility of the stock is .26.

   I would like to see the entire tree. Show the stock price and the option premium at each node.

   That will be today, 10 days out, 20 days out and 30 days out.

   You can do it in Excel and e-mail the file. You can take a picture of it and e-mail me a copy of the picture.

   You can do it in Excel and copy/paste a screen shot here. Please make sure it is legible.