In a one-period binomial model with Su = 49.5, Sd = 40.5, p = 0.8, r = 0.06, S = 45 and X = 50, what is a European put worth?
a. 2.17
b. 0.50
c. 9.50
d. 5.00
e. none of the above
Answer: A
In a one-period binomial model with Su = 49.5, Sd = 40.5, p = 0.8, r = 0.06, S = 45 and X = 50, what is a European put worth?
a. 2.17
b. 0.50
c. 9.50
d. 5.00
e. none of the above
Answer: A
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