Using the binomial pricing model,the calculated price of a one-year put option on KD stock with a strike price of $20 is closest to:
A)-7.7
B)2.4
C)4.6
D)-1.8

Question

Quizplus · Accepted Answer

A)D = 11ea7cce_3c81_86a8_928c_479d0f830afe_TB1626_11 = 11ea7cce_3c81_86a9_928c_4b048468bdaa_TB1626_11 = -0.5 B = 11ea7cce_3c81_adba_928c_bb73ca0741f5_TB1626_11 = 11ea7cce_3c81_adbb_928c_09bdd03a55f2_TB1626_11 = 11.428571 b_option = 11ea7cce_3c81_adbc_928c_f3a5d723663b_TB1626_11 b_S = 11ea7cce_3c81_d4cd_928c_7d32a2e2b16d_TB1626_11 (1.1)= -7.7

Using the Binomial Pricing Model,the Calculated Price of a One-Year