Question
Consider a futures contract on a non-dividend paying stock with futures price $20 and time to expiration 4 months. Assume that in four months the
Consider a futures contract on a non-dividend paying stock with futures price $20 and time to expiration 4 months. Assume that in four months the stock price will be either $22 or $19. Calculate the risk-neutral probabilities for the future stock prices.
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International Business Competing In The Global Marketplace
Authors: Charles Hill
14th Edition
1260387542, 9781260387544
