Sheet1Sally JamesonValue of Stock OptionNumber of Options3000Call Price$4.63Total Value$13,902.13Value of Cash OptionTotal Current Amount$5,000.00Risk Free Rate (5 years)6.02%Period5The Total Value$6,697.44

Sheet2BLACK-SCHOLES AND BINOMINAL PRICINGCurrent stock price$18.75State PricesOption exercise price$35.00Time to option exercise (in years)5Period01234567891011121314151617181920Annual interest rate6.02%Riskiness of stock40%Stock18.7522.9027.9734.1641.7350.9762.2576.0392.87113.43138.54169.22206.68252.45308.34376.60459.98561.83686.22838.151023.72Number of subdivisions of T2015.3518.7522.9027.9734.1641.7350.9762.2576.0392.87113.43138.54169.22206.68252.45308.34376.60459.98561.83686.2212.5715.3518.7522.9027.9734.1641.7350.9762.2576.0392.87113.43138.54169.22206.68252.45308.34376.60459.98Dt = T/n0.250010.2912.5715.3518.7522.9027.9734.1641.7350.9762.2576.0392.87113.43138.54169.22206.68252.45308.34Up, U1.22148.4210.2912.5715.3518.7522.9027.9734.1641.7350.9762.2576.0392.87113.43138.54169.22206.68Down, D0.81876.908.4210.2912.5715.3518.7522.9027.9734.1641.7350.9762.2576.0392.87113.43138.54Interest rate, R1.01525.656.908.4210.2912.5715.3518.7522.9027.9734.1641.7350.9762.2576.0392.874.625.656.908.4210.2912.5715.3518.7522.9027.9734.1641.7350.9762.253.794.625.656.908.4210.2912.5715.3518.7522.9027.9734.1641.733.103.794.625.656.908.4210.2912.5715.3518.7522.9027.972.543.103.794.625.656.908.4210.2912.5715.3518.752.082.543.103.794.625.656.908.4210.2912.571.702.082.543.103.794.625.656.908.421.391.702.082.543.103.794.625.651.141.391.702.082.543.103.790.931.141.391.702.082.540.760.931.141.391.70state prices0.630.760.931.14qu0.48050.510.630.76qd0.50450.420.510.34BLACK-SCHOLESBINOMINALCurrent stock price$18.75Option exercise price$35.00Call4.63406.769.7213.8019.3126.6536.2648.6464.3684.06108.52138.67175.65220.94276.36344.14427.03528.37652.25803.67988.72Time to option exercise (in years)52.754.136.128.9512.8918.2925.5535.1147.4963.2683.03107.54137.72174.71219.98275.38343.15426.02527.35651.22Annual interest rate6.02%1.522.363.615.468.1311.9217.1924.3633.8946.3062.1381.99106.57136.76173.73218.99274.37342.13424.98Riskiness of stock40%0.761.231.963.084.767.2610.8816.0023.0732.5945.0661.0180.97105.59135.76172.72217.97273.340.340.570.951.562.534.036.329.7414.6921.6731.2043.8059.9179.98104.58134.74171.68d10.08590.130.230.400.691.171.973.265.318.4713.2320.1329.7542.5858.9178.95103.54d2-0.80850.040.070.140.250.450.801.412.454.207.0511.5618.4228.2941.5657.870.010.020.030.060.120.240.450.861.602.965.389.5616.4927.25N(d1)0.53420.000.000.000.010.020.040.080.170.360.751.553.236.73N(d2)0.20940.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00Call price4.59290.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00

Sheet3