7. Triangular File Company's stock price is $220 and could halve or double in each six-month...
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7. Triangular File Company's stock price is $220 and could halve or double in each six-month period (equivalent to a standard deviation of 98%). The interest rate is 14.49% a year. Suppose that you own an American put option on Triangular stock with an exercise price of $250. a. Would you ever want to exercise the put early? b. Calculate the value of the put. 7. Triangular File Company's stock price is $220 and could halve or double in each six-month period (equivalent to a standard deviation of 98%). The interest rate is 14.49% a year. Suppose that you own an American put option on Triangular stock with an exercise price of $250. a. Would you ever want to exercise the put early? b. Calculate the value of the put.
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