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As usual, you begin your day at work. You are using a two-step binomial tree to estimate the price of a call option on
As usual, you begin your day at work. You are using a two-step binomial tree to estimate the price of a call option on WEN. The strike price of the call option is $24. The price of WEN today is $50. The risk-free rate is 5%. Round your solution to the nearest three decimals (i.e. 2.312) when needed. Please do not type the $ symbol. What is the price of this call option? u = 2 d = 0.5 You Answered Correct Answer 32.42 margin of error +/- 2% B E F
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
