USING RISK NEUTRAL VALUATION (I

question 98

Essay

USING RISK NEUTRAL VALUATION (i.e. the binomial option pricing model) find the value of the call (in euro).

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Definitions:

Healthcare Facility

An establishment that offers preventive, curative, promotional, or rehabilitative health care services in a systematic way to individuals, families, or communities.

Infection

The entry and rapid increase of external microorganisms including bacteria, viruses, and parasites into the body, where they are not usually found.

National Notifiable Disease

Diseases that are required by law to be reported to government authorities upon diagnosis, intended to assist in monitoring and controlling the spread of the disease.