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financial modelling sorry for my handwritting Consider an American put option with (in CR R notation) S = 12,3 3 u = 1,3 da 1

financial modelling

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sorry for my handwritting

image text in transcribed

Consider an American put option with (in CR R notation) S = 12,3 3 u = 1,3 da 1 /u NO b) R = 1, 15 and N = 4 time steps. assume that B= 2 is paid when excersing the option what is the premium Pp (0) g. this put Is it optional to excercire Option at node (2,0) the amount paid, & B in desired to be hals og premuim paid what value should B Now assume a duidend is paid, such that each node Dubsequent to excerasing p = 10% og asset value ('sch, is paid what is pp (o) g this put do. ngay American put option. Cin CAR notation) S = $12,3 u = 1,3 d- 1 K = R = 1, 15 and N = 4 time steps. Assume that 8 = 2 is paid when excercising the option PB (0) of this put. b) Is it optional to excercise option at node (2, o c) If the amount paid $ B. desvied to value should B? be halog premium paid. What Now assume a dividend is paid, such that each node subsequent to excercise p=10% g asset value (SCn, ) is paid out. What is pp (o) g this put 2 HONG HA Consider an American put option with (in CR R notation) S = 12,3 3 u = 1,3 da 1 /u NO b) R = 1, 15 and N = 4 time steps. assume that B= 2 is paid when excersing the option what is the premium Pp (0) g. this put Is it optional to excercire Option at node (2,0) the amount paid, & B in desired to be hals og premuim paid what value should B Now assume a duidend is paid, such that each node Dubsequent to excerasing p = 10% og asset value ('sch, is paid what is pp (o) g this put do. ngay American put option. Cin CAR notation) S = $12,3 u = 1,3 d- 1 K = R = 1, 15 and N = 4 time steps. Assume that 8 = 2 is paid when excercising the option PB (0) of this put. b) Is it optional to excercise option at node (2, o c) If the amount paid $ B. desvied to value should B? be halog premium paid. What Now assume a dividend is paid, such that each node subsequent to excercise p=10% g asset value (SCn, ) is paid out. What is pp (o) g this put 2 HONG HA

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