Let S = $50, K= $50, r = 4 % (continuously compounded). In the next 6...
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Let S = $50, K= $50, r = 4 % (continuously compounded). In the next 6 months stock price could either go up 15 percent or decline 12 percent. Calculate the premium of a 6-month call option using binomial option pricing method Let S = $50, K= $50, r = 4 % (continuously compounded). In the next 6 months stock price could either go up 15 percent or decline 12 percent. Calculate the premium of a 6-month call option using binomial option pricing method
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