A 3-month American call option on a stock has a strike price of $20. The stock price is
Chapter 21, Problem 21.12(choose chapter or problem)
A 3-month American call option on a stock has a strike price of $20. The stock price is $20, the risk-free rate is 3% per annum, and the volatility is 25% per annum. A dividend of $2 is expected in 1.5 months. Use a three-step binomial tree to calculate the option price.
Unfortunately, we don't have that question answered yet. But you can get it answered in just 5 hours by Logging in or Becoming a subscriber.
Becoming a subscriber
Or look for another answer