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The below figure is a Callable bond. Discuss the price of the call option associated with the bond. A 5 D B Time 1 102
The below figure is a Callable bond.
Discuss the price of the call option associated with the bond.
A 5 D B Time 1 102 Time 2 101 Time 3 uuu 100.0000 6.5000 r23uu 0.096030 97.1689 6.5000 uud r12u 0.084810 96.2870 6.5000 100.0000 6.5000 1 Time 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 10 16 0.075000 17 96.8880 18 19 20 21 22 23 24 25 26 27 28 29 30 r23ud 0.078620 98.7373 6.5000 udd r12d 0.069440 99.0221 6.5000 100.0000 6.5000 123dd 0.064370 100.0592 6.5000 ddd 100.0000 6.5000 A 5 D B Time 1 102 Time 2 101 Time 3 uuu 100.0000 6.5000 r23uu 0.096030 97.1689 6.5000 uud r12u 0.084810 96.2870 6.5000 100.0000 6.5000 1 Time 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 10 16 0.075000 17 96.8880 18 19 20 21 22 23 24 25 26 27 28 29 30 r23ud 0.078620 98.7373 6.5000 udd r12d 0.069440 99.0221 6.5000 100.0000 6.5000 123dd 0.064370 100.0592 6.5000 ddd 100.0000 6.5000
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
