A stock price is currently ksh40. Over each of the next two 3 months period it is

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A stock price is currently ksh40. Over each of the next two 3 months period it is expected to go up by 10% or down by10%.the risk free rate is 12% per annum with continuous compounding.suppose the volatility is 9.53% and v is 0.25

a.what is the value of 6 month European put option with a strike price of ksh42

b.what is the value of a 6 months American call option with a strike price of ksh42

Posted Date: May 18, 2024 11:08 AM

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A stock price is currently ksh40. Over each of the next two 3 months period it is

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