Use the binomal option pricing model to estimate the Call price. Stock price (S) $120.00 Stock price up (Su) $170.00 Stock price down (Sd) $50.00 Strike price (K) $120.00 rf 1.0% Call price up (Cu) Call price down (Cd) D PV(B) Call price (C)
Use the binomal option pricing model to estimate the Call price. Stock price (S) $120.00 Stock price up (Su) $170.00 Stock price down (Sd) $50.00 Strike price (K) $120.00 rf 1.0% Call price up (Cu) Call price down (Cd) D PV(B) Call price (C)
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
Problem 1PS
Related questions
Question
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Use the binomal option pricing model to estimate the Call price. |
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Stock price (S) |
$120.00 |
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Stock price up (Su) |
$170.00 |
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Stock price down (Sd) |
$50.00 |
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Strike price (K) |
$120.00 |
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rf |
1.0% |
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Call price up (Cu) |
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Call price down (Cd) |
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D |
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PV(B) |
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Call price (C) |
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