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A stock price is currently $48. At the end of 6 months, it will be either $55 or $43. The risk-free interest rate is 5%.
A stock price is currently $48. At the end of 6 months, it will be either $55 or $43. The risk-free interest rate is 5%.
- Use the no-arbitrage binomial method to calculate the value of a 6-month European call option on the stock with strike price $48.
- Calculate the same option value using the risk-neutral method
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Do Not Blame The Shorts Why Short Sellers Are Always Blamed For Market Crashes And How History Is Repeating Itself
Authors: Robert Sloan
1st Edition
0071636862,0071636870
