An asset has a current spot price of $1000. This asset can increase in value by...
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An asset has a current spot price of $1000. This asset can increase in value by 28% or decrease in value by 12%. How much should a Put (strike = 1100) sell for if the current discount rate is 8%? [Note: your answer should have at least two decimal places] An asset has a current spot price of $1000. This asset can increase in value by 28% or decrease in value by 12%. How much should a Put (strike = 1100) sell for if the current discount rate is 8%? [Note: your answer should have at least two decimal places]
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Answer rating: 100% (QA)
To determine the price of the put option we need to calculate the expected value of the option at ex... View the full answer
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
Posted Date:
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