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Spot Price: RM25 Strike Price: RM25 Time to maturity: 1 year Risk free rate: 5% Standard Deviation of stock: 0.10 Bonds coupon (interest rate): 5%

Spot Price: RM25

Strike Price: RM25

Time to maturity: 1 year

Risk free rate: 5%

Standard Deviation of stock: 0.10

Bonds coupon (interest rate): 5%

Probability of price to go up: 15%

Probability of price to go down: 5%

Find:

Binomial single period call and put prices
Put call parity theorem for Binomial model

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