Price the following option the right to sell 1 share of, Ask an Expert

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Price the following Option. The right to sell 1 share of stock at time T=1 for $1, when current price is $1, and historical volatility is 0.2, interest rate is 10%. Give one step Binomial price and Black-Scholes price at time t=0. Give replicating portfolios in each case.

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Financial Management, Finance

Category:- Financial Management
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