A nine-month American put option on a non-dividend-paying stock has a strike price of $49. The stock

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A nine-month American put option on a non-dividend-paying stock has a strike price of $49.

The stock price is $50, the risk-free rate is 5% per annum, and the volatility is 30% per annum.

Use a three-step binomial tree to calculate the option price.

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Options Futures And Other Derivatives

ISBN: 9780130090560

5th Edition

Authors: John C. Hull

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Question Posted: Oct 18, 2024 07:03 AM

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A nine-month American put option on a non-dividend-paying stock has a strike price of $49. The stock

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Options Futures And Other Derivatives

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