Question
A digital option works differently than a traditional call or put. A digital call option (sold only over the counter) pays $1 if the option
A digital option works differently than a traditional call or put. A digital call option (sold only over the counter) pays $1 if the option is in the money and $0 if it is not. Given the information above about Dell stock (and continuing to use a 14-step binomial tree), what should be the price of a (European style) digital call option on Dell stock with a strike price of $35?
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IT Auditing Defined
Authors: Ibrahim Yussuf, Matthew Robinett
1st Edition
1645435148, 978-1645435143
