Question
Given a American put option, use a binomial tree with monthly steps h=1/12 that is step length. Let S(0) =100 (Stock price) K= 110 (Strike
Given a American put option, use a binomial tree with monthly steps h=1/12 that is step length.
Let S(0) =100 (Stock price)
K= 110 (Strike price)
r= 0.03 (Risk free-rate)
T=1 (year)
Volatility= 20%.
Constructing a binomial tree?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
