Question: Consider a binomial model for option prices. We have a long position of 0.5 number of shares in the portfolio and short position in one
Consider a binomial model for option prices. We have a long position of 0.5 number of shares in the portfolio and short position in one call option. The value of the risk less profit today is $7 and price of one share of stock today is $30. What is the price of the option today? (Show youre work)
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