Refer to Table 19.1. a. Verify the regression coefficients in equation (19.12). b. Perform the analysis for

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Refer to Table 19.1.
a. Verify the regression coefficients in equation (19.12).
b. Perform the analysis for t = 1, verifying that exercise is optimal on paths 4, 6, 7, and 8, and not on path 1.

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Refer to Table 19.1. a. Verify the regression coefficients in equation (19.12). b. Perform the analysis for

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We need to calculate the discounted continuation value The payoff of the option at t 3 is equal to max K S 3 0 The PV of the continuation value at t 2 ...View the full answer

Derivatives Markets

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