Question
Suppose that S = 100, K = 100, r = 0.06, = 0.30, = 0, and T = 1.Construct a standard two period binomial stock
Suppose that S = 100, K = 100, r = 0.06, = 0.30, = 0, and T = 1.Construct a standard two period binomial stock price three using the method in Chapter 10. Consider the stock price average computed by arithmetically averaging the 6-month and 1-year prices. What is the price of an Asian arithmetic average price call?
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
