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The price of a nine-month geometric average strike put option on a stock is valued using a binomial tree with each period being three months.
The price of a nine-month geometric average strike put option on a stock is valued using a binomial tree with each period being three months. The information on the stock is as follows: The stock's current price is 65. The stock pays continuous dividends at the rate of 1% per annum. The stocks volatility is 25% per annum. The continuously compounded risk-free interest rate is 3% per annum. . Calculate the price of this option. The price of a nine-month geometric average strike put option on a stock is valued using a binomial tree with each period being three months. The information on the stock is as follows: The stock's current price is 65. The stock pays continuous dividends at the rate of 1% per annum. The stocks volatility is 25% per annum. The continuously compounded risk-free interest rate is 3% per annum. . Calculate the price of this option
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