Question
Use the following information for the next 2 questions: Sunshine Stock is currently trading at $45. Exercise price X=46. Expire in 2 periods. u=1.1; d=0.96;
Use the following information for the next 2 questions:
Sunshine Stock is currently trading at $45. Exercise price X=46. Expire in 2 periods.
u=1.1; d=0.96; r=1.04
What is the option price in up state in Period 1 (C1u)?
Question 4 options:
$6.92
$5.25
$1.52
$8.45
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
