Remaining Time: 1 hou, 51 m, 12 Question Completion 2 30 30 139 40 3 42 Path:p QUESTION 42 A E The current price of a non-dividend-paying stock is $80 with a volatility of 28%. The risk-tree is 14%. Con Europe with a 12 mm price of $90. Answer the following questions, rounding your answers to 3 decimal place. Show your working in detail, wo yurthy you w 1. What is the coefficient for the up movement? 2. What is the coefficient for the down movement? 3. Use a two-step binomial tree, like the one in the figure above, to value the option 4. Calculate A at points A, B and C (points based on the figure above). 5. What does A signify for a market maker who has sold 1 option? Arial TTTT Paragraph # 3 (12pt) . ET T-. ES T' T. - - T'T %DO Q Sum Saw Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro Remaining Time: 1 hou, 51 m, 12 Question Completion 2 30 30 139 40 3 42 Path:p QUESTION 42 A E The current price of a non-dividend-paying stock is $80 with a volatility of 28%. The risk-tree is 14%. Con Europe with a 12 mm price of $90. Answer the following questions, rounding your answers to 3 decimal place. Show your working in detail, wo yurthy you w 1. What is the coefficient for the up movement? 2. What is the coefficient for the down movement? 3. Use a two-step binomial tree, like the one in the figure above, to value the option 4. Calculate A at points A, B and C (points based on the figure above). 5. What does A signify for a market maker who has sold 1 option? Arial TTTT Paragraph # 3 (12pt) . ET T-. ES T' T. - - T'T %DO Q Sum Saw Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro