Question
Let a two-year binomial tree be given with the following parameters: S = 100, = 7.531%, r = 2%, T =1. Suppose a dividend of
Let a two-year binomial tree be given with the following parameters: S = 100, = 7.531%, r = 2%, T =1. Suppose a dividend of $10 is paid at the end of the first period.Price a two-year American put and a two-year American Call with a strike price of 90.
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
