Spot price is 16, strike price is 18, risk free interest rate is 6% with continuous compounding,

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Spot price is 16, strike price is 18, risk free interest rate is 6% with continuous compounding, it can go up 11% (1.11) and down 10% (0.9).

Use a two-step binomial tree to calculate the value of an eight-month European put option using the no-arbitrage approach

Posted Date: May 18, 2024 11:15 PM

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Spot price is 16, strike price is 18, risk free interest rate is 6% with continuous compounding,

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