PDA - $0.00 0.09 Option value: $55.35 Airbus Example S 50 K...

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Second generation PDA Forecast Cash flow Year 3 -900 120 118 390 620 250 $807.11 S 467.07 K 900 T 3 u 1.42 d 0.7 p 0.55 1-p 0.45 r 0.1 "Probability" $1,334.74 $940.57 $434.74 0.17 $662.81 $662.81 $467.07 $467.07 $0.00 0.41 $329.14 $329.14 $231.94 $0.00 0.33 $163.45
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Unformatted text preview: $0.00 0.09 Option value: $55.35 Airbus Example S 50 K 49 T 2 u 1.25 d 0.8 r 0.05 p 0.5556 1-p 0.4444 78.13 62.5 50 50 3.0 3.8 40 7.2 9 32 17 European option value: $3.0 American option value: $3.8...
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This note was uploaded on 04/12/2010 for the course FINA 537 taught by Professor Luxiaolei during the Spring '09 term at HKUST.

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PDA - $0.00 0.09 Option value: $55.35 Airbus Example S 50 K...

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