@bijaime8 asked 1 month ago.

Which of the following describes how american options can be valued using a binomial tree?

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@jackyy answered 3 weeks ago.

20. A tree is constructed to value an option on an index which is currently worth 100 and has a volatility of 25%. The index provides a dividend yield of 2%. Another tree is constructed to value an option on a non-dividend-paying stock which is currently worth 100 and has a volatility of 25%.

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@Juliann answered 3 weeks ago.

 6. Which of the following describes how American options can be valued using a binomial tree? ... Use a two-step tree to value a European call option on the stock with a strike price of $32 that expires in 6 months. Each step is 3 months, the risk free rate is 8% per annum with continuous compounding.
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@Gaurii answered 4 weeks ago.

6.Which of the following describes how American options can be valued using a binomial tree? A.Check whether early exercise is optimal at all nodes where the option is in-the-money B.Check whether early exercise is optimal at the final nodes C.Check whether early exercise is optimal at the penultimate nodes and the final nodes D.None of the above

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