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cash notional H A 2 year European cash binary call option with barrier level K = 110 and $1,000,000.0 is traded at $326,455.25. The current price of the underlying stock is 100. The risk free interest rate is 5 % ( continuous compounding). What is the fair value of a European cash binary put option of the same maturity and barrier level? (round numerical results to 2 decimal places) =

cash notional H A 2 year European cash binary call option with barrier level K = 110 and $1,000,000.0 is traded at $326,455.25. The current price of the underlying stock is 100. The risk free interest rate is 5 % ( continuous compounding). What is the fair value of a European cash binary put option of the same maturity and barrier level? (round numerical results to 2 decimal places) =

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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= 110 and A 2 year European cash binary call option with barrier level K cash notional H = $1,000,000.0 is traded at $326,455.25. The current price of the underlying stock is 100. The risk free interest rate is 5% ( continuous compounding). What is the fair value of a European cash binary put option of the same maturity and barrier level? (round numerical results to 2 decimal places)
Transcribed Image Text:= 110 and A 2 year European cash binary call option with barrier level K cash notional H = $1,000,000.0 is traded at $326,455.25. The current price of the underlying stock is 100. The risk free interest rate is 5% ( continuous compounding). What is the fair value of a European cash binary put option of the same maturity and barrier level? (round numerical results to 2 decimal places)
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