Suppose Stock Price(S) = SAR 60, Exercise Price(X) = SAR 60, Su= SAR 69, Sd = SAR

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Suppose Stock Price(S) = SAR 60, Exercise Price(X) = SAR 60, Su= SAR 69, Sd = SAR 51. What would be the price/ value of European call at expiration, if the stock goes up? Assume one period binomial model.
SAR 0
SAR 8
SAR 9
SAR 6

Related Book For answer-question

Statistics for Business and Economics

ISBN: 978-0321826237

12th edition

Authors: James T. McClave, P. George Benson, Terry T Sincich

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Posted Date: Jun 05, 2021 08:00 PM

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Suppose Stock Price(S) = SAR 60, Exercise Price(X) = SAR 60, Su= SAR 69, Sd = SAR

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The price of the European call at expiration would be SAR 9 if the stock went u... View the full answer

Statistics for Business and Economics

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