Question
The following binomial option pricing problem involving a call. This call has two periods to go before expiring. Its stock price is 65, and its
The following binomial option pricing problem involving a call. This call has two periods to go before expiring. Its stock price is 65, and its exercise price is 60. The risk-free rate is 0.05%, the value of u is 1.20x, and the value of the d is .95x. Find the value of the European call premium.
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Risk Management And Financial Institution
Authors: John C. Hull
2nd Edition
0136102956, 9780136102953
