Daniel wants to be a derivative analyst. He goes for an interview at comrade trading. Comrade trading

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Daniel wants to be a derivative analyst. He goes for an interview at comrade trading. Comrade trading ceo ass Daniel to price options based on the given details

Spot price =$50

U=1.0956

D=0.9128

Ris free rate = 10%

Strike price of put = $75

Time to exercise = 2 years

Probability of price increase = 71.13%

Two step binomial model

What is the ideal put option price based on the inputs given

Related Book For answer-question

Financial Statement Analysis

ISBN: 978-0078110962

11th edition

Authors: K. R. Subramanyam, John Wild

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Posted Date: May 18, 2024 10:19 AM

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Daniel wants to be a derivative analyst. He goes for an interview at comrade trading. Comrade trading

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Financial Statement Analysis

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