Question: TT, and Ile, sometimes called primitive securities, represent variables that impact the value of an option but depend on the stock process factors u and

 TT, and Ile, sometimes called primitive securities, represent variables that impact

TT, and Ile, sometimes called primitive securities, represent variables that impact the value of an option but depend on the stock process factors u and d, the risk-free rate, time until expiration, and the number of periods until expiration. O False True You have the following information about LearnMore Inc.'s stock and a two-month call option with a strike price of $115.20. LearnMore Inc.'s current stock price is $96.00. You are using the multiperiod binomial option pricing model to find the value of the two-month option with two periods. ITu and TTa values given here apply to any period. Data Collected for LearnMore Inc. 1.5032 0.8200 0.1847 0.3215 You work with a junior analyst to calculate the value of the option, and she submits her inferences to you. Which of the following points are true in the case of LearnMore Inc.s stock options? Check all that apply. The option payoff if the stock goes down in two months will be $0.00. The value of the call option will always remain $5.38, irrespective of the time until expiration. The value of the two-month call option with a strike price of $115.20 at the end of two months will be $5.38 LearnMore Inc.'s stock price after two months likely will be $144.31 if the stock goes up by a factor of 1.5032

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