The option gonna be exercised in 0.25 year or 3 months, we don't need the price at t=0.5, you overpriced the option. Change the exercised date to 0.5 to make this whole thing right.
The option price : 84.23 does not equal to (+0) , i think the 174.93*0.488 need to divide the interest rate, in order to get the 84.23. Am I correct???
david, u should get as much credit as sal khan. u r god.
formchoi2190 2 months ago 2
doing this right now!!! in exam on Thursday......
littlejupiter89 9 months ago
The option gonna be exercised in 0.25 year or 3 months, we don't need the price at t=0.5, you overpriced the option. Change the exercised date to 0.5 to make this whole thing right.
k3nu0t 11 months ago
what is the a?
siofraod 11 months ago
David..You Rock Man!! My FRM Guru :)
samkaz321 1 year ago
god bless you, david! :)
OtherUniverse 1 year ago
Calculation at node 2 is not adding up, kindly check the formula.
Regards
humayunrali 1 year ago
@humayunrali i guess its just a rounding up error.
ThePsyclopz 1 year ago
Thank you! You've saved me. My exam is tomorrow and I can work through these problems now.
Loserbethy 1 year ago
hi... good one... can you kindly upload the xls file as well
srpollaa 2 years ago
The option price shouldn't depend on the probabilities, but on the value of a replicating portfolio to mimic the behavior of the option itself.
donatellomaterassi 2 years ago
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The option price : 84.23 does not equal to (+0) , i think the 174.93*0.488 need to divide the interest rate, in order to get the 84.23. Am I correct???
yim2yim 2 years ago
Comment removed
yim2yim 2 years ago
o paji thank ju man,lakh lakh
hsanun 2 years ago
Thanks for the extremely clear explaination, you are way better than my lecturer.
naimrahc88 2 years ago
Thank you
passenger61 3 years ago
this saved my ass
itchyfurball 3 years ago
thanks for the tutorial, its easy to understand
andrigilang 3 years ago