A Stock Is Currently Trading at $100 $u = 1.10$ Or Fall by a Factor Of

question 28

Multiple Choice

A stock is currently trading at $100.In each month,the stock will either increase in price by a factor of $u = 1.10$ or fall by a factor of $d = 0.90$ .The risk-free rate of interest per month is 0.1668% in simple terms,i.e. ,an investment of $1 at the risk-free rate returns $1.001668 after one month.What is the price of a 100-strike,three-month American put option?

• A)$7.20
• B)$7.24
• C)$7.70
• D)$7.74

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Definitions:

Receptionists

Front office workers who manage the greeting of visitors, handling calls, and other administrative duties.

Support Personnel

Employees who provide various forms of assistance and logistical support in a workplace, not directly involved in core business operations.

Secretaries

Administrative officials responsible for managing the day-to-day operations of an office or organization.

Receptionists

Front desk workers who manage client reception and administrative tasks, often encountered as the first point of contact in offices.