Question
Consider an American put option. Suppose its stock price is $50 and its strike price is $52. If the risk-free rate is 7% per annum
Consider an American put option. Suppose its stock price is $50 and its strike price is $52. If the risk-free rate is 7% per annum with continuous compounding, the volatility is 32%, and the life of the option is 2 years and there are two time steps, what is the value of this American put option?
$2.50
$8.50
$6.50
$7.50
$5.50
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Real Estate Development Principles And Process
Authors: Mike E. Miles, Laurence M. Netherton, Adrienne Schmitz
5th Edition
