i could not get it even with schweser explanation. anyone please? ----------------- A stock is priced at 38 and the periodic risk-free rate of interest is 6%. What is the value of a two-period European put option with a strike price of 35 on a share of stock using a binomial model with an up factor of 1.15 and a risk-neutral probability of 68%? A) $0.64. B) $2.58. C) $0.57.
0.57 – solved multiple times before. Use search.
thanks.