Question
The current stock price is $ 50. In 3 months, its price changes according to a binomial tree, u is 1.2 and d is 0.8.The
The current stock price is $ 50. In 3 months, its price changes according to a binomial tree,uis 1.2 anddis 0.8.The stock pays no dividends and continuous compounded interest rate is 8%. There is aput option on this stock with the strike price of $ 55 maturing in 3 months. According to the Binomial Model,what is the put option's price?
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
4th Canadian edition
134724712, 134724713, 9780134779782 , 978-0134724713
