Question
IBMstockcurrentlysellsfor28dollarspershare . Oveuysellsfor28dollarspershare . Over11 monthsthepricewill eithergoby 16.0 percentor downby wnby - 7.0 percent .Therisk -freerateofinterestis9.0 percent . Therisk- free percentcontinuouslycompounded . What isthe valueof
IBMstockcurrentlysellsfor28dollarspershare . Oveuysellsfor28dollarspershare . Over11 monthsthepricewill eithergoby 16.0 percentor downby wnby - 7.0 percent .Therisk -freerateofinterestis9.0 percent . Therisk- free percentcontinuouslycompounded . What isthe valueof a putoption withstrike price29 and maturity11 months ?
su = 32.48 sd = 26.04
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
