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elf_fu elf_fu
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7 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 a downward movement during the year?
A) $43.77
B) $ 45.28
C) $48.98
D) $51.84
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
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phuongha2892phuongha2892
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7 years ago
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4 years ago
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