Question
What is the expected value of a call option, if the probability of the up node value is 60.6 % and the Su is $40.79
What is the expected value of a call option, if the probability of the up node value is 60.6 % and the Su is $40.79 and the value of Sd is $11.64 with a strike price of 25?
What is the expected value of a put option, if the probability of the up node is 34.5% and the Su is $39.43 and Sd is $17.85 with a strike price of 44?
What is the value of an option which has an expected value at time t of $9.12 and an intrinsic value of $8.74?
When at a node in the binomial tree the intrinsic value is greater than the expected value, you should exercise immediately. (true/false)
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