cooperr2105 cooperr2105

19-12-2022
Business

Answered

The stock price of Bravo Corp. is currently $100. The stock price a year from now will be either $160 or $60 with equal probabilities. The interest rate at which investors invest in riskless assets is 6%. Using the binomial OPM, the value of a put option with an exercise price of $135 and an expiration date 1 year from now should be worth __________ today.
$34.09
$37.50
$38.21
$45.45
I know the answer should be 38.21.
I want to know how to get this answer?
Thank you so much!

Answer :

Other Questions

Suppose a country has real GDP of $10,000 at the beginning of the year 2005. Each year the economy grows by 5 percent. By how much will GDP rise by the end of 2

the wholesale price for a pillow is $3.50 . a certain department store marks up the wholesale price by 50% find the price of the pillow in the department store.

an analyst gathers the following information about meyer, incorporated: meyer has 1,800 shares of 10% cumulative preferred stock outstanding, with a par value o

TRUE/FALSE. the farm credit system has a stock requirement that its borrowers purchase stock in the system from the loan proceeds.

Indicate the effect that each transaction/event listed here will have on the financial ratio listed opposite it, and provide an explanation for your answer. Use

Suppose the cost of a car produced in the United States is $20,000. The current exchange rate is US$1 = €0.55. Instructions: Round your answers to 2 decimal pla

The _____________________ is the central bank of the United States and sets interest rates, which can have an effect on how much interest is earned from 401k's

Which of the following groups has primary responsibility for the information contained in the financial statements? A. The company's management B. The company's

aldorf company has two sources of funds: long-term debt with a market and book value of $5 million issued at an interest rate of 12%, and equity capital that ha

). banco industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 5% in year 4. the spreadsheet above