Multiple Choice
Determine the value of u for a three period binomial problem when the option's life is one-half a year and the volatility is 0.48.Use the model for u that does not require the risk-free rate.
A) 1.22
B) 1.48
C) 1.40
D) 1.32
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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