4. Option pricing - Multiperiod binomial approach The value of an option can be calculated by using a step-by-step approach in the case of single periods or by using sophisticated formulas that can be casily created through a spreadsheet. In the real world, two possible outcomes for a stock price in six months in an disumption. The stock markets are volatile, and stocks move up and down based on market and firm specific factors. Use the following formula to calculate the value of any call option within the same time period. To use the formula for different cal options, you can solve this formula with algebra ar program it into a spreadsheet. cul Based on your understanding of the binomial option pricing model is the following statement true or folder II. and II., sometimes called primitive securities, represent variables that impact the value of an option but which also depend on the stock process factors u and d, the stree rate, the time until expiration, and the number of periods until expiration False True You have the following information about eam More Inc.'s stock and a two month call option with a strike price of $62.40. rantre Inc. Current stock price is $48.00. You are using the multiperiod binomial option pricing model to find the value of the two monthestion with two periode. 11. and 11e values given here apply to any period. Data Collected for Learn More Inc. d 1.1383 0.4592 0.4525 0.1723 II. 114 You work with a junior analyst to calculate the value of the option, and she sets berinterences to you. Which of the lowing points are true the case of Learn More Inc.'s stock options? Check all that apply Learn More Inice stock price after one monthey will be $94.64 the stock oes up by a factor 1.130 The value of the call option will always remain 10.00, respective of the time to The value of the heront call option with a strike price of $60 the end of month we 10.00 The option pavof the stock oes up in the month will be $0.00 4. Option pricing - Multiperiod binomial approach The value of an option can be calculated by using a step-by-step approach in the case of single periods or by using sophisticated formulas that can be easily created through a spreadsheet. In the real world, two possible outcomes for a stock price in six months is an assumption. The stock markets are volatile, and stocks move up and down based on market- and firm-specific factors. Use the following formula to calculate the value of any call option within the same time period. To use the formula for different call options, you can solve this formula with algebra or program it into a spreadsheet. V der Based on your understanding of the binomial option pricing model, is the following statement true or false II and IIsometimes called primitive securities, represent variables that impact the value of an option but which also depend on the stock process factors u ond d, the risk free rate, the time until expiration, and the number of periods until expiration V cer + eR ed on your understanding of the binomial option pricing model, is the following statement true or false? II and IIa, sometimes called primitive securities, represent variables that impact the value of an option but which also depend on the stock process factors u and d, the risk-free rate, the time until expiration, and the number of periods until expiration G False True You have the following information about Learn More Inc.'s stock and a two-month call option with a strike price of $62.40. Learn More Inc.'s current stock price is $48.00. You are using the multiperiod binomial option pricing model to find the value of the two-month option with two periods. II. and Il values given here apply to any period. Data Collected for Learn More Inc. 1.1383 0.4592 a II 0.4525 0.1723 au work with a junior analyst to calculate the value of the option, and she submits her inferences to you. Which of the following points are true in e case of LearnMore Inc.'s stock options? Check all that apply. Learn More Inc.'s stock price after one month likely will be $54.64 if the stock goes up by a factor of 1.1383. The value of the call option will always remain $9.00, irrespective of the time until expiration The value of the one-month call option with a strike price of 562.40 at the end of one month will be 50.00 The option payoff if the stock goes up in one month will be 50.00 4. Option pricing - Multiperiod binomial approach The value of an option can be calculated by using a step-by-step approach in the case of single periods or by using sophisticated formulas that can be casily created through a spreadsheet. In the real world, two possible outcomes for a stock price in six months in an disumption. The stock markets are volatile, and stocks move up and down based on market and firm specific factors. Use the following formula to calculate the value of any call option within the same time period. To use the formula for different cal options, you can solve this formula with algebra ar program it into a spreadsheet. cul Based on your understanding of the binomial option pricing model is the following statement true or folder II. and II., sometimes called primitive securities, represent variables that impact the value of an option but which also depend on the stock process factors u and d, the stree rate, the time until expiration, and the number of periods until expiration False True You have the following information about eam More Inc.'s stock and a two month call option with a strike price of $62.40. rantre Inc. Current stock price is $48.00. You are using the multiperiod binomial option pricing model to find the value of the two monthestion with two periode. 11. and 11e values given here apply to any period. Data Collected for Learn More Inc. d 1.1383 0.4592 0.4525 0.1723 II. 114 You work with a junior analyst to calculate the value of the option, and she sets berinterences to you. Which of the lowing points are true the case of Learn More Inc.'s stock options? Check all that apply Learn More Inice stock price after one monthey will be $94.64 the stock oes up by a factor 1.130 The value of the call option will always remain 10.00, respective of the time to The value of the heront call option with a strike price of $60 the end of month we 10.00 The option pavof the stock oes up in the month will be $0.00 4. Option pricing - Multiperiod binomial approach The value of an option can be calculated by using a step-by-step approach in the case of single periods or by using sophisticated formulas that can be easily created through a spreadsheet. In the real world, two possible outcomes for a stock price in six months is an assumption. The stock markets are volatile, and stocks move up and down based on market- and firm-specific factors. Use the following formula to calculate the value of any call option within the same time period. To use the formula for different call options, you can solve this formula with algebra or program it into a spreadsheet. V der Based on your understanding of the binomial option pricing model, is the following statement true or false II and IIsometimes called primitive securities, represent variables that impact the value of an option but which also depend on the stock process factors u ond d, the risk free rate, the time until expiration, and the number of periods until expiration V cer + eR ed on your understanding of the binomial option pricing model, is the following statement true or false? II and IIa, sometimes called primitive securities, represent variables that impact the value of an option but which also depend on the stock process factors u and d, the risk-free rate, the time until expiration, and the number of periods until expiration G False True You have the following information about Learn More Inc.'s stock and a two-month call option with a strike price of $62.40. Learn More Inc.'s current stock price is $48.00. You are using the multiperiod binomial option pricing model to find the value of the two-month option with two periods. II. and Il values given here apply to any period. Data Collected for Learn More Inc. 1.1383 0.4592 a II 0.4525 0.1723 au work with a junior analyst to calculate the value of the option, and she submits her inferences to you. Which of the following points are true in e case of LearnMore Inc.'s stock options? Check all that apply. Learn More Inc.'s stock price after one month likely will be $54.64 if the stock goes up by a factor of 1.1383. The value of the call option will always remain $9.00, irrespective of the time until expiration The value of the one-month call option with a strike price of 562.40 at the end of one month will be 50.00 The option payoff if the stock goes up in one month will be 50.00