Draw the Tree for a Put Option on $20,000 with a Strike

question 83

Multiple Choice

Draw the tree for a put option on $20,000 with a strike price of £10,000.The current exchange rate is £1.00 = $2.00 and in one period the dollar value of the pound will either double or be cut in half.The current interest rates are i_$ = 3% and are i_£ = 2%.

---

Definitions:

Debriefing

Explanation of the purposes of the research that is given to participants following their participation in the research.

Ethical Considerations

The moral implications and obligations considered during research or any action.

Incentives

Motivators or rewards, often used in various contexts to encourage behaviors or actions considered desirable.

Institutional Review Board

A committee that reviews research proposals to ensure ethical standards are met and participants are protected.