Question: Suppose $ = 100, k = 92, T = lyear. Using the lognormal tree with u = e(1-8-0.50%)htovh and d = er-8-0.50%)h-ovh Note that the

Suppose $ = 100, k = 92, T = lyear. Using the lognormal tree with u = e(1-8-0.50%)htovh and d = er-8-0.50%)h-ovh Note that the length of a period is one week and the following parameters are weekly r = 0.005, 0 = 0.003, and 8 = 0.001. The number of periods n = 52. 1. Compute the price of the European and American put option. Suppose $ = 100, k = 92, T = lyear. Using the lognormal tree with u = e(1-8-0.50%)htovh and d = er-8-0.50%)h-ovh Note that the length of a period is one week and the following parameters are weekly r = 0.005, 0 = 0.003, and 8 = 0.001. The number of periods n = 52. 1. Compute the price of the European and American put option
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