Multiple Choice
Using a binomial tree,what is the price of a $40 strike 6-month call option,using 3-month intervals as the time period? Assume the following data: S = $37.90,r = 5.0%,σ = 0.35
A) $2.50
B) $2.76
C) $2.92
D) $3.08
Correct Answer:
Verified
Correct Answer:
Verified
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