Question
The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European put option on the stock with a
The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European put option on the stock with a strike price of $32 that expires in 6 months with u = 1.1 and d = 0.9. Each step is 3 months, the risk free rate is 8%.
| $2.24 | ||
| $2.44 | ||
| $2.64 | ||
| $2.84 |
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Development Finance Innovations For Sustainable Growth
Authors: Nicholas Biekpe, Danny Cassimon, Andrew William Mullineux
1st Edition
331954165X, 978-3319541655
