Question
Assuming this is a 1-period binomial lattice what is the value of a tesla call option for one year if the strike price is 382,
Assuming this is a 1-period binomial lattice what is the value of a tesla call option for one year if the strike price is 382, and after one year the stock price can be either 557 or 267. The probability of an upward movement is 0.7212 and the discount factor for one year is 0.9696. Remember e^-rt can also be referred to as a discount factor.
Assuming this is a 1-period binomial lattice what is the value of a tesla put option for one year if the strike price is 370, and after one year the stock price can be either 575 or 207. The probability of an upward movement is 0.5039 and the discount factor for one year is 0.8785. Remember e^-rt can also be referred to as a discount factor.
Assuming this is a 1-period binomial lattice what is the value of a tesla put option for one year if the strike price is 394, and after one year the stock price can be either 593 or 221. The probability of an upward movement is 0.6218 and the discount factor for one year is 0.7587. Remember e^-rt can also be referred to as a discount factor.
Assuming this is a 1-period binomial lattice what is the value of a tesla put option for one year if the strike price is 305, and after one year the stock price can be either 428 or 184. The probability of an upward movement is 0.7305 and the discount factor for one year is 0.884. Remember e^-rt can also be referred to as a discount factor.
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