Question
A stock pays $5 dividend one period from now. Build a two-period non-recombining binomial tree with the following parameters: S=40, X=40 u=1.15, d=0.9, r=3%. a)
A stock pays $5 dividend one period from now. Build a two-period non-recombining binomial tree with the following parameters: S=40, X=40 u=1.15, d=0.9, r=3%. a) Price both a European and American call option. Explain the difference, if any.
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The Business Of Personal Finance
Authors: Joseph Calandro Jr, John Hoffmire
1st Edition
1032104562, 978-1032104560
