Question
You calculated the following values for a two-year at-the-money American put on a stock currently trading at $99: Su = $128.70 Sd = $79.20 Assume
You calculated the following values for a two-year at-the-money American put on a
stock currently trading at $99: Su = $128.70 Sd = $79.20 Assume n = 2, the risk-free rate is 9% per annum, and the stock is expected to grow at the same rate for the next two years.
Calculate and show the stock prices after two years in a binomial tree.
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Financial Accounting Australia And New Zealand Edition
Authors: Jerry J. Weygandt
11th Edition
1119668654, 978-1119668657
