Question
Let S = $40, K = $40, r = 8% (continuously compounding), = 30%, = 0, T = 0.5 year and n = 2 (n
Let S = $40, K = $40, r = 8% (continuously compounding), = 30%, = 0, T = 0.5 year and n = 2 (n refers to the number of binomial periods).
Also given u = 1.1853 and d = 0.8781.
Construct the binomial tree for the stock.
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Technical Analysis The Complete Resource For Financial Market Technicians
Authors: Charles Kirkpatrick, Julie Dahlquist
3rd Edition
0134137043, 978-0134137049
