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A binomial tree prices an American option at $3.12 and the corresponding European option at $3.04. The Black-Scholes-Merton price of the European option is $2.98.
A binomial tree prices an American option at $3.12 and the corresponding European option at $3.04. The Black-Scholes-Merton price of the European option is $2.98. What is the control variate price of the American option? Question 4 options: $2.90 $3.18 $3.08 $3.06
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
