NBCT stock's current price is $100, over the next 3 years, the
stock price will either increase 60% or decrease 37.5% each year.
The risk free rate of return is 6% per year. NBCT stock pays 35%
dividends per share and the ex-dividend date is at year 1. There is
one option with exercise price =$100 and maturity =3 years. Use
3-time period binomial model to calculate the option price as of
today for the following cases:
.1. Suppose it is European call option
2. Suppose it is European put option
3. Suppose it is American call option
4. Suppose it is American put option
NBCT stock's current price is $100, over the next 3 years, the stock price will either increase 60% or decrease 37.5% ea
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