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Business, 30.10.2020 17:50 Fetty1738

A stock is selling for $32.70. The strike price on a call, maturing in 6 months, is $35. The possible stock prices at the end of 6 months are $39.50 and $28.40. The stock pays no dividends. Continuous compounded interest rates are 6.0%. What are the up factor u and down factor d of the stock prices according to the Binomial Model

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A stock is selling for $32.70. The strike price on a call, maturing in 6 months, is $35. The possibl...
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