Question
A stock price is currently 40 and has a volatility of 25% and a dividend yield of 2%. the risk-free rate is 7%. what is
A stock price is currently 40 and has a volatility of 25% and a dividend yield of 2%. the risk-free rate is 7%. what is the value of a european six-month put option with a strike price of 42 using a two-step tree?
a. $3.15 b. $3.39 c. $3.67 d. $3.86
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National Finance A Chinese Perspective
Authors: Yunxian Chen, Heming Yong
1st Edition
9813360917, 978-9813360914
