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ehidna [41]
3 years ago
11

The volatility of a non-dividend-paying stock whose price is $78, is 30%. The risk-free rate is 3% per annum (continuously compo

unded) for all maturities. Calculate values for u, d, and p when a two-month time step is used. What is the value of a four-month European call option with a strike price of $80 given by a two-step binomial tree. Suppose a trader sells 1,000 options (10 contracts). What position in the stock is necessary to hedge the traders position at the time of the trade
Business
1 answer:
GarryVolchara [31]3 years ago
6 0
Meowwwwww meowwwwww
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