Binomial model american put option as a guarantee


As binomial american put option model guarantee a


JavaScript is disabled on your browser. Please enable JavaScript to use all the features on this page. This page uses JavaScript to progressively load the article content as a user scrolls. Click the View full text link to bypass dynamically loaded article content. View full text. In fact, Consider a two-date binomial model. A company has both debt andequity in its capital structure. The value of the company is 100 atDate 0. At Date 1, it is equally like that the value ofthe company increases by 20% or decreases by 10%.

The totalpromised amount to the debtholders is 100 at Date 1. An equity option is a contract to buy or sell shares of stock. Option contracts have an expiration date. A Binomial model allows us to evalua.




Binomial model american put option as a guarantee

Binomial model american put option as a guarantee

Binomial model american put option as a guarantee



Add a comment

Your e-mail will not be published. Required fields are marked *