What is the price of an american put option with a strike


There is a stock that trades for $74. What is the price of an American put option with a strike price of $70 if the expected return of the stock is 12 percent, the volatility is 65 percent, and the risk free rate is 5 percent if the option has three months until expiration? Use one-month steps.

Find U, D, and P. (show exactly how to put the formula into a ti-84)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the price of an american put option with a strike
Reference No:- TGS02841194

Expected delivery within 24 Hours