Question
Questions 11 . TKAK stock price is $241. It will either increase or decrease 11% in month 1 and 15% in month 2. The monthly
Questions 11 .
TKAK stock price is $241. It will either increase or decrease 11% in month 1 and 15% in month 2. The monthly risk-free interest rate is 5.6%.
A. Using the risk-neutral probability approach, find the premium of a 2-month put option with strike price of $240.
B. Using the replicating portfolio approach, find the premium of a 1-month call option with strike price of $241.
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
9th Edition
0814408648, 978-0814408643
