Problem

29. Price a ten-year Asian option with an initial stock price of $50, strike $50, annual r...

29. Price a ten-year Asian option with an initial stock price of $50, strike $50, annual risk-free rate r = 10%, and volatility Price the call and the put, and see whether put-call parity holds. Use a pricing tree with a time step of one year per period.

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Solutions For Problems in Chapter 19