Use binominal option pricing to compute the price of the, Financial Management

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Use binominal option pricing to compute the price of the

1. Use Binominal Option Pricing to compute the price of the option given: Current price = $12; Strike Price = $19, Stock price at option expiration will be either $25 or $10, Risk free rate is 8% annually, time to option expiration 135 days.

2. ABC Corp. issued 15-year bonds 2 years ago at a coupon rate of 10.6%. The bonds make semi-annual payments. If these bonds currently sell for 97% of par value, what is the YTM?

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