Question
Suppose a non-dividend paying stock is trading at $175 per share and has a volatility of 45%. What is the fair price of a 3-month
Suppose a non-dividend paying stock is trading at $175 per share and has a volatility of 45%. What is the fair price of a 3-month European put option with a strike price of $190 per share using 1 binomial period? Assume the risk-free rate is 1%. Round to the nearest $0.01.
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
