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Let S 0 = $10, K = $10, r = 8%, T = 0.5, and q = 0. Let u = 1.3, d = 0.8,
Let S0 = $10, K = $10, r = 8%, T = 0.5, and q = 0. Let u = 1.3, d = 0.8, and n = 1.
a. What are the premium, , and B for a European put?
b. Show both the put and the synthetic put in a diagram.
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
