Question
post all the steps Let S = $85, K = $80, r = 5% (continuously compounded), T = 0.5, and d = 0. Let u
post all the steps
Let S = $85, K = $80, r = 5% (continuously compounded), T = 0.5, and d = 0. Let u = 1.2, d = 0.8, and n = 1. Calculate the value of a European put if D = 0.352941 and B = 35.1112.
| a. | $4.344 | |
| b. | $6.593 | |
| c. | $5.111 | |
| d. | $6.542 | |
| e. | $3.680 |
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Personal Finance Version 3.1
Authors: Rachel S. Siegel
3rd Edition
1453334807, 978-1453334805
