Determine the Value of D for a Four Period Binomial

question 52

Multiple Choice

Determine the value of d for a four period binomial model when the option's life is one-fourth of a year and the volatility is 0.64.Use the model for u and d that does not require the risk-free rate.

• A)0.85
• B)1.17
• C)2.56
• D)0.90
• E)none of the above

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Definitions:

North's Favor

A term that might refer to preferences, advantages, or policies that benefit the northern regions or entities, specifically in a historical or political context. NO

Sherman

General William Tecumseh Sherman, a key Union general during the American Civil War, known for his "March to the Sea" and scorched earth policies.

Take Atlanta

Refers to the military objective during the Civil War, where Union forces aimed to capture the strategic Confederate city of Atlanta, Georgia.

Lincoln's View

The perspectives and policies of Abraham Lincoln, particularly regarding the Union and slavery during his presidency and the Civil War.