Question: 32. Using the single period binomial tree, ealculate the value today of a one year call option on a stock that has an exercise and
32. Using the single period binomial tree, ealculate the value today of a one year call option on a stock that has an exercise and 5%. a. 6 b. 6.25 c. 6.3 d. 6.50 33. Use the information in question 32 to calculate the value of a pet option. a.b.c.d.2.923.073.252.78 34. Using the two period binomial tree, calculate the value today of a two year call option on a stock that has an exercise and current price of $60. Assume that if the market was to increase, the stock price would increase to $75 and the risk free rate is 5%. a.b.c.d.8.259.2510.2511.25
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