The macro functions

You can only use the macro functions to verify your answer, these functions cannot be used to solve the questions in a-c. Question 1. We have a Stock with price S0 today and price SUp = S0*U in up state and SDown = S0*D in down state. We have a risk-free asset with payoff of R in both states. For each period from t0 to t3, the stock price can either go up or down. (a)If S0=50, U=1.1, D=0.97, R=1.06. What is the price of a European put option with an exercise price of 50 based on the Binomial model? (Check the slides around slide 15 in lecture 7. The example has 5 dates (t0-t4)) (2pts) (b)If S0=50, U=1.1, D=0.97, R=1.06. What is the price of an American put option with an exercise price of 50 based on the Binomial model? (slides after 19) (2pts) (c)If S0=50, U=1.1, D=1, R=1.06. What is the price of a European put option with an exercise price of 50 based on the Binomial model? What about American put? (hint: you don’t necessarily need to do calculations, but you will need to tell me the reason) (2pts) (d) Now, check the VBA functions in the example spreadsheet. See how we can turn complicated calculations into functions that can be easily used. Verify the above answers with these functions. (4pts) Share on Facebook Tweet Follow us This question has been answered. Get Answer


Best Custom Essay Writing Services

Looking for unparalleled custom paper writing services? Our team of experienced professionals at is here to provide you with top-notch assistance that caters to your unique needs.

We understand the importance of producing original, high-quality papers that reflect your personal voice and meet the rigorous standards of academia. That’s why we assure you that our work is completely plagiarism-free—we craft bespoke solutions tailored exclusively for you.

Why Choose

  • Our papers are 100% original, custom-written from scratch.
  • We’re here to support you around the clock, any day of the year.
  • You’ll find our prices competitive and reasonable.
  • We handle papers across all subjects, regardless of urgency or difficulty.
  • Need a paper urgently? We can deliver within 6 hours!
  • Relax with our on-time delivery commitment.
  • We offer money-back and privacy guarantees to ensure your satisfaction and confidentiality.
  • Benefit from unlimited amendments upon request to get the paper you envisioned.
  • We pledge our dedication to meeting your expectations and achieving the grade you deserve.

Our Process: Getting started with us is as simple as can be. Here’s how to do it:

  • Click on the “Place Your Order” tab at the top or the “Order Now” button at the bottom. You’ll be directed to our order form.
  • Provide the specifics of your paper in the “PAPER DETAILS” section.
  • Select your academic level, the deadline, and the required number of pages.
  • Click on “CREATE ACCOUNT & SIGN IN” to provide your registration details, then “PROCEED TO CHECKOUT.”
  • Follow the simple payment instructions and soon, our writers will be hard at work on your paper. is dedicated to expediting the writing process without compromising on quality. Our roster of writers boasts individuals with advanced degrees—Masters and PhDs—in a myriad of disciplines, ensuring that no matter the complexity or field of your assignment, we have the expertise to tackle it with finesse. Our quick turnover doesn’t mean rushed work; it means efficiency and priority handling, ensuring your deadlines are met with the excellence your academics demand.

ORDER NOW and experience the difference with, where excellence meets timely delivery.