Question
A stock price is currently $81. It is known that at the end of 3 months it will either be $84 or $74. The risk
A stock price is currently $81. It is known that at the end of 3 months it will either be $84 or $74. The risk free interest rate is 6.5% per annum with continuous compounding. What is the current value of a European put option with expiration date 3 months and strike price $78?
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Principles Of Public Finance
Authors: Toshihiro Ihori
1st Edition
9811023883, 978-9811023880
