Question
*Please show work so I can get a better understanding* A binary option pays off $500 if a stock price is greater than $60 in
*Please show work so I can get a better understanding*
A binary option pays off $500 if a stock price is greater than $60 in three months. The current stock price is $61 and its volatility is 20%. The risk-free rate is 2% and the expected return on the stock is 8%. What is the value of the option? What is the real-world expected payoff?
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Ebay Tips And Tricks To Increase Your Ebay Sales
Authors: Jessica Wilson
1st Edition
1774854015, 978-1774854013
