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A stock price is currently $53. At the end of 6 months, it will be either $62 or $45. The risk-free interest rate is 7%.
A stock price is currently $53. At the end of 6 months, it will be either $62 or $45. The risk-free interest rate is 7%.
- Use the no-arbitrage binomial method to calculate the value of a 6-month European call option on the stock with strike price $53.
- Calculate the same option value using the risk-neutral method
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Sustainability In Energy Business And Finance Approaches And Developments In The Energy Market
Authors: Hasan Dinçer , Serhat Yüksel
1st Edition
3030940500,3030940519
