Corporate Finance Assignment/ Professional Essay Writers
May 8th, 2020
A two-month American put option on a stock index has an exercise price of 480. The current level of the index is 484, the risk-free interest rate is 10% per annum, the dividend yield on the index is 3% per annum, and the volatility of the index is 25% per annum.
Divide the life of the option into four half-month periods and use the tree approach to estimate the value of the option. Get Finance Help Today
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