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PLEASE NO EXCEL!! Can someone help me with this in the most simplified way?? Thank you. Question 4 O out of 1 points = =
PLEASE NO EXCEL!! Can someone help me with this in the most "simplified" way?? Thank you.
Question 4 O out of 1 points = = = = Let S = $55, K = $50, r = 5% (continuously compounded), 8 = 2%, o = 25%, and T = 1. What are the appropriate values of u and d to build a 3-period binomial stock price tree? (Use the formulas from the main part of the chapter and lecture notes, not the alternative formulas in the appendix.) Selected Answer: e. u = 1.3618; d=0.7668 = Answers: a. u = 1.2556; d = 0.9390 = b. u= = 1.1669; d = 0.8743 c. U = 1.2276; d = 0.8087 = d. u = 1.0887; d = 0.9670 e. u = 1.3618; d = 0.7668
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