Question: PLEASE can u demonstrate the binomial tree model for this question! And tell me how to work out the payoffs for the 2 period put!!
PLEASE can u demonstrate the binomial tree model for this question! And tell me how to work out the payoffs for the 2 period put!! Thanks
Q- The current price of Excel Network Systems stock is 60 per share. In each of the next two years the stock price will either increase by 20% or decrease by 10%. The 3% one year risk free rate of interest will remain constant. Calculate the price of a two year European put option on Excel Network Systems stock with a strike price of 60. Use binomial pricing
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