18. Suppose that S = ($50), K = ($45), = 0.30, r = 0.08, and t...
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18. Suppose that S = \($50\), K = \($45\), σ = 0.30, r = 0.08, and t = 1. The stock will pay a \($4\) dividend in exactly 3 months. Compute the price of European and American call options using a four-step binomial tree.
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Derivatives Markets Pearson New International Edition
ISBN: 978-1292021256
3rd Edition
Authors: Robert L. Mcdonald
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