Question
A stock pays $5 dividend one period from now. Build a two-period non-recombining binomial tree with the following parameters: S=40, u=1.15, d=0.9, r=3%. a) Price
A stock pays $5 dividend one period from now. Build a two-period non-recombining binomial tree with the following parameters: S=40, u=1.15, d=0.9, r=3%. a) Price both a European and American ATM call option. Explain the difference, if any.
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
