Find the pay-offs at maturity of a 1-period at-the-money call option on a 1-perioid at-the-money call option on 100 shares of a stock currently trading
Find the pay-offs at maturity of a 1-period at-the-money call option on a 1-perioid at-the-money call option on 100 shares of a stock currently trading at $15 per share. In each of the next 2 periods, the stock can increase (in dollar value) by 60% or decrease by 20%. The risk free rate is 25 percent.
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Authors: Roger Staiger
2nd Edition
1138046183, 978-1138046184
