Assume the following data on a 6-month put option, using 3-month intervals as the time period. K = $40.00, S = $37.90, r = 5.0%, = .35. What is the binomial option price?
A)
$ 2.10
B)
$ 2.86
C)
$ 3.91
D)
$ 4.25
Answer:
C
You might also like to view...
Hannah Adams is a senior sales manager in Elmo Corp, a rapidly growing company manufacturing personal computers and printers
In order to handle sales effectively, Hannah insists on using the services of different groups of people from different departments within the company such as the sales, marketing, technical support, and finance departments. In this instance, Hannah makes use of ________. A) team selling B) competitive marketing intelligence C) hybrid selling D) occasion segmentation E) sales force automation systems
What is the total return for a 20-year zero-coupon bond that is offering a yield to maturity of 8% if the bond is held to maturity?
What will be an ideal response?