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A stock is currently priced at $51.00. Every 7 months the price will go up by 19% or down by 19%. The risk free rate
A stock is currently priced at $51.00. Every 7 months the price will go up by 19% or down by 19%. The risk free rate is 6.4% per annum with continuous compounding.
Using the binomial tree model, compute the price of a European put option with strike $65.58 expiring in 21 months.
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The Handbook Of Financing Growth
Authors: Kenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser, D. L. Williams
2nd Edition
