Question
You observe a 50 price for a non-dividend-paying stock. The call option has two years to mature, the periodically compounded risk-free interest rate is 5%,
You observe a 50 price for a non-dividend-paying stock. The call option has two years to mature, the periodically compounded risk-free interest rate is 5%, the exercise price is 50, u = 1.356, and d = 0.744. Assume the call option is European-style.Compute the current PUT option value
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Global Finance And The Macroeconomy
Authors: A. Makin
1st Edition
0333736982, 978-0333736982
