Stock X price is $100 and could go up by 17% or down by 15% in each

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Stock X price is $100 and could go up by 17% or down by 15% in each six-month period. A one-year put option on stock X has an exercise price of $98. The interest rate is 2.5% a year.

Find an equivalent standard deviation of returns of stock X.

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Posted Date: May 14, 2023 01:35 AM

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Stock X price is $100 and could go up by 17% or down by 15% in each

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Heres how to find the equivalent standard deviation of returns of stock X 1 Calculate the up and dow... View the full answer

Fundamentals Of Corporate Finance

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