John is trying three different methods to price a european


John is trying three different methods to price a European put option that will expire in three months. The underlying stock is currently priced at $32 and doesn’t pay any dividend. The put strike is $30, the risk-free rate is 10% per annum and the volatility is 30% per annum. (1) What is the put price today based on the Monte-Carlo simulations using 5,000 trials? Make sure to provide the detailed equation for the simulated paths of underlying stock prices.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: John is trying three different methods to price a european
Reference No:- TGS01716715

Expected delivery within 24 Hours