Question
6) Consider the following binomial model for a stock S t , for t = 0, 1, 2. The value of p is 0.75. a)
6) Consider the following binomial model for a stock St, for t = 0, 1, 2. The value of p is 0.75.
a) What are the probabilities of S2 =121 or 99 or 81?
b) What are the expected stock prices at dates 1 and 2?
c) Is the stock price variance increasing, decreasing or constant across time? Use the concept of Markov process, if required
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Michael Saylor On Bitcoin The Very First Interviews
Authors: Coinan The Barbarian ,Satoshi Nakamoto
1st Edition
979-8423442019
