Let S = $45, r = 3% (continuously compounded), d = 5%, s = 30%, T =
Fantastic news! We've Found the answer you've been seeking!
Question:
Let S = $45, r = 3% (continuously compounded), d = 5%, s = 30%, T = 1.5. In this situation, the appropriate values of u and d are 1.27738 and 0.75972, respectively. Using a 2-step binomial tree, calculate the value of a $40-strike European
Let S = $40, r = 8% (continuously compounded), d = 1%, s = 25%, T = 2. In this situation, the appropriate values of u and d are 1.37713 and 0.83527, respectively. Using a 2-step binomial tree, calculate the value of a $45-strike American
Related Book For
Posted Date: