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Using BlackScholesMertonBinomiallOe.xlsm, compute the call and put prices for a stock option. The current stock price is

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Using BlackScholesMertonBinomiallOe.xlsm, compute the call and put prices for a stock option. The current stock price is $100, the exercise price is $105.1271, the risk-free interest rate is 5 percent (continuously compounded), the volatility is 30 percent, and the time to expiration is one year. Explain the observed relationship between the call and put price?
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Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.

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