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 are the risk-neutral probabilities?
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New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
