The current stock price of Chocho inc is $125. You expect the stock price a year from now to be either $134 or $86 with equal probabilities. The interest rate at which investors can borrow is 13%. Using the binomial opm, what should be the price (premium) of a call option with an exercise price of $225.50 and an expiration date one year from now?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here