Question
A stocks price is $50. Over each of the next two three-month periods it can go up 6% or down 5%. The annual risk-free rate
A stocks price is $50. Over each of the next two three-month periods it can go up 6% or down 5%. The annual risk-free rate is 5%. The value of a six-month European call option with a strike price of $51 is closest to
(This can be solved as a 2-period BOPM)
| $1.64 | ||
| $2.49 | ||
| $0.84 | ||
| $1.94 |
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
8th Edition
0814406807, 978-0814406809
