Multiple Choice
Assume the following data on a 6-month call option, using 3-month intervals as the time period. K = $50, S = $48, r = 4.0%, = .27. What is the highest expected stock price after 3 months according to the binomial model?
A) $ 48.00
B) $ 50.00
C) $ 55.56
D) $ 59.27
Correct Answer:
Verified
Correct Answer:
Verified
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