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I dont understand why 3.2 is either 0 or 4. Where are these figure come from Ostoz 6. Shares in stock XYZ are currently trading
I dont understand why 3.2 is either 0 or 4. Where are these figure come from Ostoz 6. Shares in stock XYZ are currently trading at $9 and are expected to be worth either $25 or $5 next year. An at-the-money European put option on stock XYZ expiring next year is currently trading at $ 1 $3.20. The one-year risk-free interest rate is equal to: (a) 100%. XYZ ATM EU Out (K =9) fo (b) 50% 25 (c) 25% 3.20 o do (d) 0% 4 4. 9-25 x P r slup + 5x Pv g) down 25x prst lupa sxolfo = 8vS lup = 0.20 925 3:22 ] =) Prsl down ning to be worth either $20 or $10 next year. At the same
I dont understand why 3.2 is either 0 or 4. Where are these figure come from
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