Question
All of the following are variables used to determine a call option's price in a binomial model EXCEPT Question 4 options: the risk-free rate the
All of the following are variables used to determine a call option's price in a binomial model EXCEPT
Question 4 options:
|
| the risk-free rate |
|
| the risk-neutral probability for stock price to go up |
|
| the exercise price |
|
| the actual probability for stock price to go up estimated using historical data |
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Financial Management Principles And Applications
Authors: J William Petty, Sheridan Titman, Arthur J Keown, John D Martin, Peter Martin, Michael Burrow, Hoa Nguyen
6th Edition
1442539178, 9781442539174
