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assume in all questions that S = 50, r = 0.08, = 0.03, K = 45. Calculate the value of the put option using a
assume in all questions that S = 50, r = 0.08, = 0.03, K = 45. Calculate the value of the put option using a binomial tree with one step, and step size h = 0.25, in each of the two cases when = 0.2 and = 0.8 (the same h = 0.25 in both cases), and with u = e (r)h+ h and d = e (r)h h . Again, express the final answer using two decimals, but use so many decimals in the intermediate computations that the two decimals in the final answer are certainl
(v) Calculate the value of the put option using a binomial tree with one step, and step size h = 0.25, in each of the two cases when = 0.2 and 0 = 0.8 (the same h 0.25 in both cases), and with u = e(-b)htov and d = e(-5)h-ovh Again, express the final answer using two decimals, but use so many decimals in the intermediate computations that the two decimals in the final answer are certainly correct. (v) Calculate the value of the put option using a binomial tree with one step, and step size h = 0.25, in each of the two cases when = 0.2 and 0 = 0.8 (the same h 0.25 in both cases), and with u = e(-b)htov and d = e(-5)h-ovh Again, express the final answer using two decimals, but use so many decimals in the intermediate computations that the two decimals in the final answer are certainly correct
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