The current price of Kinston Corporation stock is $10. In each of the next two years, this stock price can either go up by $3.00 or go down by $2.00. Kinston stock pays no dividends. The one year risk-free interest rate is 5% and will remain constant. Using the binomial pricing model, calculate the price of a two-year call option on Kinston stock with a strike price of $9.
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The current price of Kinston Corporation stock is $10. In each of the next two years,...
The current price of Estelle Corporation stock is $22.00. In each of the next two years, this stock price will either go up by 18% or go down by 18%. The stock pays no dividends. The one-year risk-free interest rate is 9.0% and will remain constant. Using the Binomial Model, calculate the price of a one-year call option on Estelle stock with a strike price of $22.00. The price of the one-year call option is $ . (Round to to...
The current price of Estelle Corporation stock is $ 23.00 In each of the next two years, this stock price will either go up by 18 % or go down by 18 %. The stock pays no dividends. The one-year risk-free interest rate is 8.0 % and will remain constant. Using the Binomial Model, calculate the price of a one-year call option on Estelle stock with a strike price of $ 23.00
The current price of Estelle Corporation stock is $ 23.00. In each of the next two years, this stock price will either go up by 16 % or go down by 16 %. The stock pays no dividends. The one-year risk-free interest rate is 8.0 % and will remain constant. Using the Binomial Model, calculate the price of a one-year call option on Estelle stock with a strike price of $ 23.00. The price of the one-year call option is...
The current price of Estelle Corporation stock is $29.00. In each of the next two years, this stock price will either go up by 21% or go down by 21%. The stock pays no dividends. The one-year risk-free interest rate is 6.5% and will remain constant. Using the Binomial Model, calculate the price of a one-year put option on Estelle stock with a strike price of $29.00
The current price of Estelle Corporation stock is $28.00. In each of the next two years, this stock price will either go up by 24% or go down by 24%. The stock pays no dividends. The one-year risk-free interest rate is 7.6% and will remain constant. Using the Binomial Model, calculate the price of a one-year put option on Estelle stock with a strike price of $28.00. The price of the one-year put option is $ . (Round to the...
The current price of Estelle Corporation stock is $ 28.00 In each of the next two years, this stock price will either go up by 21% or go down by 21%. The stock pays no dividends. The one-year risk-free interest rate is 7.6% and will remain constant. Using the Binomial Model, calculate the price of a one-year put option on Estelle stock with a strike price of $28.00.
The current price of Estelle Corporation stock is $ 30.00. In each of the next two years, this stock price will either go up by 23 % or go down by 23 %.The stock pays no dividends. The one-year risk-free interest rate is 7.6 % and will remain constant. Using the Binomial Model, calculate the price of a one-year put option on Estelle stock with a strike price of $ 30.00. The price of the one-year put option is $_____(Round...
The current price of Estelle Corporation stock is $ 25.00. In each of the next two years, this stock price will either go up by 23 % or go down by 23 %. The stock pays no dividends. The one-year risk-free interest rate is 5.3 % and will remain constant. Using the Binomial Model, calculate the price of a one-year put option on Estelle stock with a strike price of $ 25.00.
(please show all work) The current price of Estelle Corporation stock is $23.00. In each of the next two years, this stock price will either go up by 19% or go down by 19%. The stock pays no dividends. The one-year risk-fre 7.0% and will remain constant. Using the Binomial Model, calculate the price of a one-year call option on Estelle stock with a strike price of $23.00. The price of the one-year call option is $ . (Round to...
(PLEASE SHOW ALL WORK) The current price of Estelle Corporation stock is $25.00. In each of the next two years, this stock price will either go up by 21% or go down by 21%. The stock pays no dividends. The one-year risk-free interest rate is 7.6% and will remain constant. Using the Binomial Model, calculate the price of a one-year put option on Estelle stock with a strike price of $25.00. The price of the one-year put option is $...