Option Pricing Class Problem Solutions

The solutions for Parts A and B of today’s Option Pricing Class Problem handout are available at http://fin4335.garven.com/spring2019/BinomialOPMClassProblemSolutions.pdf.  I provided solution procedures using all of the methods that were showcased during today’s class meeting; i.e., replicating portfolio, delta hedging, risk neutral valuation, and put-call parity. Next Tuesday, we will start class by introducing the concept … Continue reading Option Pricing Class Problem Solutions