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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

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 the full answer


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Introduction To Corporate Finance

Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: June 01, 2023 03:09:03
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