Question
Given the maturity of an American put option 2 years, riskfree rate 10%, volatility of the stock 40%, current spot price of stock $50, strike
Given the maturity of an American put option 2 years, riskfree rate 10%, volatility of the stock 40%, current spot price of stock $50, strike price $50, what is the value of option when stock price is 50 in step 2, considering a 3-step binomial tree?
A. 6.219
B. 13.931
C. 10.204
D. 0
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Financial Management For Nurse Managers And Executives
Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner, Jason Mose
5th Edition
0323415164, 9780323415163
