Question: In the binomial model, the risk-free interest rate discounted expected payoff of a call option using actual probabilities is $3.296, the market price of risk
In the binomial model, the risk-free interest rate discounted expected payoff of a call option using actual probabilities is $3.296, the market price of risk 0.0427, and the risk of the call option is $5. Then, the price of the call option is?
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To determine the price of the call option we can use the formula for pricing options in the ... View full answer
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