Generate a new tree for boeings option with a volatility of


Generate a new tree for Boeing’s option with a volatility of 45% annually rather than 38% annually. Revalue the option, and determine if R&D should commence at a cost of $2.7 billion.

U = ___ (round this answer to four decimal places)

D = ___ (round this answer to four decimal places)

q = ___ (round this answer to four decimal places)

Value of the option = $   billion (round this answer to three decimal places in billions)

Should R&D go forward? "Yes" or "No"

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Financial Management: Generate a new tree for boeings option with a volatility of
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