Question
A stock price is currently $31 . It is known that at the end of two months it will be either $29 or $33 .
A stock price is currently $31 . It is known that at the end of two months it will be either $29 or $33 . The risk-free interest rate is 9% per annum with continuous compounding. Suppose St is the stock price at the end of two months. What is the value of a derivative that pays off St^2 at this time?
| 690 | ||
| 1709.97 | ||
| 1319.24 | ||
| 979.25 |
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Entrepreneurial Finance Finance For Small Business
Authors: Philip J. Adelman
1st Edition
0138129835, 9780138129835
