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elf_fu elf_fu
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6 years ago
Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $60.00, σ = 0.30, r = 0.05. An American put option with a strike price of $65 would be exercised early at what dividend yield?
A) 5.0%
B) 6.0%
C) 11.0%
D) Never exercised early
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Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
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phuongha2892phuongha2892
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6 years ago
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elf_fu Author
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#2
6 years ago
Thank you phuongha2892
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#3
4 years ago
thank you very much
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