Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Insurance
New Topic  
elf_fu elf_fu
wrote...
Go to Answer
Posts: 705
Rep: 2 0
6 years ago
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
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
Read 91 times
2 Replies
Replies
Answer verified by a subject expert
phuongha2892phuongha2892
wrote...
#1
Posts: 471
Rep: 49 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

elf_fu Author
wrote...
#2
6 years ago
Heavy Heart Correct
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1268 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1226
  
 56
  
 374