Question: Exercise II . A . 5 . You assumed the 1 - level tree model, priced and sold a put with strike E , Sd

Exercise II.A.5. You assumed the 1-level tree model, priced and sold a put with strike E, Sd < E Su? How do your answers t with the rule of thumb selling options is selling volatility ? Look up Volatility (Finance) on Wikipedia, if necessary. You may assume r =0 for simplicity

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