Assume that prices for a stock follow the lognormal model. You are given the following information...
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Assume that prices for a stock follow the lognormal model. You are given the following information about the time-T price of the stock: PE[S- S,>K] = 242.5698 E [S; | Sp > K] = 382.85 13 Var[In( Sr)] = 0.2523 Find the expected payoff of a T-year, K-strike European put on this stock. [DM 05d_04] O 20.78 O 23.25 O 22.02 O 18.32 O 19.55 Assume that prices for a stock follow the lognormal model. You are given the following information about the time-T price of the stock: PE[S- S,>K] = 242.5698 E [S; | Sp > K] = 382.85 13 Var[In( Sr)] = 0.2523 Find the expected payoff of a T-year, K-strike European put on this stock. [DM 05d_04] O 20.78 O 23.25 O 22.02 O 18.32 O 19.55
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