Binomial Model Variables U= 1.15 D= 0.90 Index price= PKR720 Strike price= PKR750 Hedge ratio= 0.5697 Interest

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Binomial Model Variables

U= 1.15

D= 0.90

Index price= PKR720

Strike price= PKR750

Hedge ratio= 0.5697

Interest rate= 3%

Calculate the price investor paid two years ago for call option with strike price of PKR750 using the binomial valuation method and the data above.

Posted Date: May 18, 2024 12:13 PM

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Binomial Model Variables U= 1.15 D= 0.90 Index price= PKR720 Strike price= PKR750 Hedge ratio= 0.5697 Interest

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