A stock price is currently 40 and has a volatility of 25% and a dividend yield of 2%. the risk-free rate is 7%. what is the value of a european six-month put option with a strike price of 42 using a...


A stock price is currently 40 and has a<br>volatility of 25% and a dividend yield of 2%.<br>the risk-free rate is 7%. what is the value of a<br>european six-month put option with a strike<br>price of 42 using a two-step tree?<br>a. $3.15<br>b. $3.39<br>c. $3.67<br>d. $3.86<br>

Extracted text: A stock price is currently 40 and has a volatility of 25% and a dividend yield of 2%. the risk-free rate is 7%. what is the value of a european six-month put option with a strike price of 42 using a two-step tree? a. $3.15 b. $3.39 c. $3.67 d. $3.86

Jun 08, 2022
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