Binomial pricing: Consider a call option and a put option both written on C72 shares. Both options have a strike price of $20 and expire in one year. The shares of C72 are currently selling for $20. In one month the shares will be at either $24 or $18. The risk-free rate is 0 per cent. Which is worth more, the put option or the call option?

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The Answer of Binomial pricing: Consider a call option and a put option both written on C72 shares. Both options have a strike price of $20 and expire in one year. The shares of C72 are currently selling for $20. In one month the shares will be at either $24 or $18. The risk-free rate is 0 per cent. Which is worth more, the put option or the call option?

Binomial Pricing: Consider a Call Option and a Put Option