Question

Compute the fair value of a chooser option which expires after n = 10n=10 periods. At

expiration the owner of the chooser gets to choose (at no cost) a European call option

or a European put option. The call and put each have strike K = 100K=100 and they mature

5 periods later, i.e. at n = 15n=15.

Answer 1

Answer:

European option is a version of an options contract that limits execution to its expiration date. ... Instead, the call or put action will only take place on the date of option maturity.

Explanation:

as I don't know where is correct or not but it will help