Stocks of the Binomial Inc. are currently $50 per share and it is known that its stock
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Stocks of the Binomial Inc. are currently $50 per share and it is known that its stock price will either increase by 15% per year or decrease by 25% per year, independently for the next two years. The prevailing risk-free rate is 3%. Value an American call option on the stock with two years of life and an exercise price of $53.
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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