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Please help explain in detail i have tried and can not get the right answer thank you for your help Let S = $45, r
Please help explain in detail i have tried and can not get the right answer thank you for your help
Let S = $45, r = 3% (continuously compounded), d = 5%, s = 30%, T = 1.5. In this situation, the appropriate values of u and d are 1.27738 and 0.75972, respectively. Using a 2-step binomial tree, calculate the value of a $40-strike European call option.
Selected Answer: | b. $8.305 |
Answers: | a. $7.037 |
b. $8.305 | |
c. $7.783 | |
d. $8.141 | |
e. $7.960 |
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