Question
Use the two-state binomial call option model for this problem. S0= $100; X = $120; the two possibilities for ST are $150 and $80, the
Use the two-state binomial call option model for this problem. S0= $100; X = $120; the two possibilities for ST are $150 and $80, the risk-free rate is 5%. The value of the call option is _______.
Kindly, mention formula used and show working for all the steps, thank you!
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International Trade Finance
Authors: Tarsem Bhogal, Arun Trivedi
2nd Edition
303024542X, 9783030245429
