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solve on an excel sheet and post it. thank you 4 Moscha's current stock price is $150 per share. In every 6 month period, the
solve on an excel sheet and post it. thank you
4 Moscha's current stock price is $150 per share. In every 6 month period, the price will either go up by 25% or decrease by 20%. Suppose the risk free rate is 12% per year. A. Use one-step binomial tree to value a call option on Moscha that expires in six months with exercise price of $140. B. Replicate the payoff of call option in part A using shares of stocks and borrowing. What is the amount of borrowing? 4 Moscha's current stock price is $150 per share. In every 6 month period, the price will either go up by 25% or decrease by 20%. Suppose the risk free rate is 12% per year. A. Use one-step binomial tree to value a call option on Moscha that expires in six months with exercise price of $140. B. Replicate the payoff of call option in part A using shares of stocks and borrowing. What is the amount of borrowingStep by Step Solution
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