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clear hand written solution. asap I will give thumb up Suppose that Stock XYZ is currently trading at $80 and does not pay any dividends.
clear hand written solution. asap I will give thumb up
Suppose that Stock XYZ is currently trading at $80 and does not pay any dividends. Using a Cox-Ross-Rubinstein binomial tree with two periods, we would like to price a European down and out put option written on this stock with a strike price of $85, barrier level of $75. Assume that the binomial tree parameters are: u= 1.07, and e-rat 0.99. Find the price of the barrier option 1.21 3.88 4.98 6.33Step by Step Solution
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