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1. TMS is currently trading at $50 per share. An executive at TMS has told you that if the company's recently introduced new products are
1. TMS is currently trading at $50 per share. An executive at TMS has told you that if the company's recently introduced new products are well received the stock will increase to $60 and if they are not well received the stock price will drop to $42 in 6 months. The current six-month interest rate is 6%. You wish to calculate C(50,.5,50) using BOPM. a) Find " u " and "d" b) Find Cu and Cd c) Calculate C(50,.5,50)
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