Find the value of a call option using the binomial option, Ask an Expert

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Find the value of a call option using the binomial option pricing formula for single period when given the following information: you have an option with 6 months until expiration, the payoff in the up scenario is $12, and the payoff in the down scenario is $0, the risk-free rate is 5%, the weight for the up scenario is 1.1, and the weight for the down scenario is 0.7.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92749465

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