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Compute the historical volatility of your assigned company using the sample period data (which is...

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Finance

Compute the historical volatility of your assigned company using the sample period data (which is 1.099284). Apply both Binomial tree model and Black-Scholes model to price a European Call option written on your assigned company that expires on Dec 31st, 2018 where todays date is Oct 1st, 2018. For simplicity, assume that risk-free rate is fixed at 2% in continuously compounded annual terms, time-to-maturity of the option contract is 3 months, and the strike price is given by the closing price of your assigned company on Sep 28th, 2018 (rounded to the nearest dollar). Use bi-weekly time steps when constructing Binomial tree model

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