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elf_fu elf_fu
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Consider a three-period binomial model of 12 months. Assume the stock price is $37.50,
σ = 0.20, r = 0.05 and the exercise price of a call option is $35. What is the forecasted price of the stock at the node after two consecutive upward movements of the stock price?
A) $38.68
B) $42.80
C) $48.84
D) $50.06
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Derivatives Markets

Derivatives Markets


Edition: 3rd
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phuongha2892phuongha2892
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elf_fu Author
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6 years ago
Heavy Heart Correct
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