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I already did the 14 15, but i don't know how to do the 16. Today, the stock is at 100 and can go up
I already did the 14 15, but i don't know how to do the 16.
Today, the stock is at 100 and can go up and down over the next week, and then again up and down from there. We are pricing a call struck at 90. #8 120 110 #11 100 #13 A 90 #12 80 #10 Use the computed q to sweep back through the tree to fill the call values in circles. For each node use the formula: C q Cu (1-q) Cd. Ignore interestStep by Step Solution
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