Solved

A Stock Price Is Initially $30 and a Dividend of $2

Question 1

Short Answer

A stock price is initially $30 and a dividend of $2 is expected at the end of 1.5 months. The volatility is 30% per year. In a two step tree with each step equal to one month, what is the stock price on the middle node at the end of the tree? Give two decimal places.) _ _ _ _ _ _

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents