Value american put option binomial
Posted: Lvieksheks Date of post: 22.05.2017
Sure, go ahead and please reference http: It seems to me that the logic of that formula is that the price of the put option is driven by the price of say buying the call and selling the underlying stock creating a synthetic put, setting dividends aside for this purpose , and then adjusting this value by discounting the future strike of the put by r for t periods, which I vaguely seem to recall is adjusting for the imputed rate of return on excess cash from the stock sale. A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies...