Question
Please help explain in detail thank you for your help Let S = $40, r = 8% (continuously compounded), d = 1%, s = 25%,
| Please help explain in detail thank you for your help Let S = $40, r = 8% (continuously compounded), d = 1%, s = 25%, T = 2. In this situation, the appropriate values of u and d are 1.37713 and 0.83527, respectively. Using a 2-step binomial tree, calculate the value of a $45-strike American put option. | |||||||||||||
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
9th Edition
0321598903, 978-0321598905
