a use black scholes model to value the call option on UC b use the formula

# A use black scholes model to value the call option on

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a. use black-scholes model to value the call option on UC. b. use the formula given in section 21-2 to calculate the up and down moves that you would use if you valued the uC option with the one-period binomial method. Now value the option by using that method.
c. recalculate the up and down moves and revalue the option by using the two-period binomial method.
Where: 20. option exercise. Other things equal, which of these American options are you most likely to want to exercise early? a. a put option on a stock with a large dividend or a call on the same stock b. a put option on a stock that is selling below exercise price or a call on the same stock c. a put option when the interest rate is high or the same put option when the interest rate is low
Buffelhead’s stock price is \$220 and cold halve or double in each six-month period (equivalent to a standard deviation of 98%). A one-year call option on Buffelhead has an exercise price of \$165. The interest rate is 21% a year.

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