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Other Fields Homework Help Insurance Topic started by: elf_fu on Jul 6, 2017



Title: Consider a one-period binomial model of 12 months. Assume the stock price is $54.00, σ = 0.25, r = ...
Post by: elf_fu on Jul 6, 2017
Consider a one-period binomial model of 12 months. Assume the stock price is $54.00,
σ = 0.25, r = 0.04 and the exercise price of a call option is $55. What is the forecasted price of the stock given an upward movement during the year?
A) $56.16
B) $61.01
C) $65.12
D) $72.16


Title: Re: Consider a one-period binomial model of 12 months. Assume the stock price is $54.00, σ = 0.25, ...
Post by: phuongha2892 on Jul 6, 2017
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Title: Re: Consider a one-period binomial model of 12 months. Assume the stock price is $54.00, σ = 0.25, r = ...
Post by: elf_fu on Sep 13, 2017
:heart: Correct