A stock currently sells for 50 in six months it will either, Ask an Expert

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A stock currently sells for $50. In six months, it will either rise to $55 or decline to $45. The risk-free interest rate is 6% per year.

Find the value of a European call option with an exercise price of $50.

Find the value of a European put option with an exercise price of $50, using the binomial approach.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91338881

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