Vodafone Stock has a current price of $45. Its annual volatility is 30%. The stock does not pay dividends. The stock pri

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Vodafone Stock Has A Current Price Of 45 Its Annual Volatility Is 30 The Stock Does Not Pay Dividends The Stock Pri 1 (71.42 KiB) Viewed 26 times

Vodafone Stock has a current price of $45. Its annual volatility is 30%. The stock does not pay dividends. The stock price follows the binomial models, with 24 periods, each of length 1 month. The continuously-compounded risk- free interest rate is 6% per annum. (i) A 24-month Asian average strike put option on stock Vodafone Stock uses a geometric average based on the stock price at the end of each month. Exercise is only permitted on the expiry date. The price for this Asian option is PG. (ii) A 24-month Asian average price call option on stock Vodafone Stock uses a arithmetic average based on the stock price at the end of each month with strike price 44. Exercise is only permitted on the expiry date. The price for this Asian option is C₁. Find PG-CA-