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The book says the answer is $117. 44, I need a detailed explanation please! Problem 17.2 The annualized standard deviation of the continuously compounded stock
The book says the answer is $117. 44, I need a detailed explanation please! Problem 17.2 The annualized standard deviation of the continuously compounded stock return on GS Inc is 23%. The annual continuously compounded rate of interest is 12%, and the annual continuously compounded dividend yield on GS Inc. is 7%. The current price of GS stock is $35 per share. Using a two-period binomial model, find the price of GS Inc, stock if it moves up twice over the course of 7 years
The book says the answer is $117. 44, I need a detailed explanation please!
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