Bionomial pricing option model


Calculate the price of a six-month Americal call option on gold futures when the current futures prices is $260 per troy ounce, the strike price is $270, the risk-free is 8 percent per annum, and the volatility is 30 percent per annum. Using the bionomial tree aproach with a time interval of three months.

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Finance Basics: Bionomial pricing option model
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