Q3: Use a two period binomial tree to price a 12 month European style put option on YMMV struck at $16. The spot price of YMMV is $15.25 and it pays no dividends. Assume u/d =4/3. up= 1/3, andr=9.75%....

Q3: Use a two period binomial tree to price a 12 month European style put<br>option on YMMV struck at $16. The spot price of YMMV is $15.25 and it<br>pays no dividends. Assume u/d =4/3. up= 1/3, andr=9.75%.<br>A) $1.25<br>B) $0.96<br>C) $0.72<br>D) $0.58<br>E) $1.30<br>

Extracted text: Q3: Use a two period binomial tree to price a 12 month European style put option on YMMV struck at $16. The spot price of YMMV is $15.25 and it pays no dividends. Assume u/d =4/3. up= 1/3, andr=9.75%. A) $1.25 B) $0.96 C) $0.72 D) $0.58 E) $1.30

Jun 10, 2022

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Q3: Use a two period binomial tree to price a 12 month European style put option on YMMV struck at $16. The spot price of YMMV is $15.25 and it pays no dividends. Assume u/d =4/3. up= 1/3, andr=9.75%....

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