Question

) The current price of KD Industries stock is $20. In the next year the stock price will either go up
by 20% or go down by 20%. KD pays no dividends. The one year risk-free rate is 5% and will
remain constant. Using the binomial pricing model, calculate the price of a one-year call option
on KD stock with a strike price of $20.
b) Using the binomial pricing model, calculate price of a one-year put option on KD stock with a
strike price of $20.
c) Construct a binomial tree detailing the option information and payoffs for a call option with a
$20 strike price that expires in one year.

Answer 1

Answer:

২নবগঠিত শব্দকে কয়টি শ্রেণিতে ভাগ করা যায় এবং কী কী ?