In the composition of their TED Talk, students must use a variety of mediums including short video clips (Maximum 30 seconds), Keynote, PowerPoint, Prezi, iMovie or other appropriate tools. Students may present this by either: a) Recording their voice over the top of their presentation OR b) Recording themselves NEXT TO their presentation (i.e. have the presentation on a screen beside the speaker etc.)
Using the simple binomial trees, calculate the value of a call option with the following characteristics: Underlying asset current value = 1,000 Option exercise price = 1,250. Per-period dividends =10% of asset value 1 Up movement per period = 1.5, d=1/u. Risk-free rate =10% Time to expiration= 2years. Number of time periods per year=1 [11 Marks]
June 16, 2016
9:07 pm
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