Question
( 5 points ) Knowing what you learned about risk-less hedges and the binomial option pricing model, calculate the value of the call with X=$50;
(5 points) Knowing what you learned about risk-less hedges and the binomial option pricing model, calculate the value of the call with X=$50; S=$60; Two possible states: Good= $60; Bad =$40; Rf = 10%
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(2 points) How are the binomial and the Black/Scholes models related?
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Foundations Of Financial Management
Authors: Stanley B Block, Geoffrey A Hirt
12th Edition
0073295817, 9780073295817
