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Binomial Trees and Options Quiz
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Binomial Trees and Options Quiz

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@EasedOrange

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Questions and Answers

What is the stock price in 3 months according to the given information?

  • $21
  • $22 (correct)
  • $20
  • $18

    • What is the value of the portfolio today, considering a risk-free rate of 12%?

  • $4.50
  • $5.00
  • $4.3670 (correct)
  • $4.00

    • What is the value of the call option when the stock price is $20 and the strike price is $21?

  • $4.367
  • $0 (correct)
  • $0.633
  • $1

    • What is the value of the riskless portfolio in 3 months?

    <p>$4.50</p> Signup and view all the answers

    What is the value of the shares in the portfolio that is long 0.25 shares and short 1 call option?

    <p>$5.00</p> Signup and view all the answers

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