Question
You are creating a 50-step binomial model to value an option with a maturity of one year. The current stock price is $70 and the
You are creating a 50-step binomial model to value an option with a maturity of one year. The current stock price is $70 and the volatility of the stock is 20%. What is the value in the lower-most node in the last step of the stock price tree?
A. $23.75
B. $24.75
C. $25.75
D. $26.75
E. $27.75
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Gapenskis Cases In Healthcare Finance
Authors: George H. Pink
6th Edition
1567939651, 978-1567939651
