Business, 28.05.2020 21:04 etampus0220

A stock index is currently 990, the risk-free rate is 5%, and the dividend yield on the index is 2%. Use a three-step tree to value an 18-month American put option with a strike price of 1,000 when the volatility is 20% per annum. How much does the option holder gain by being able to exercise early

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A stock index is currently 990, the risk-free rate is 5%, and the dividend yield on the index is 2%....

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