Q663
In binomial approach of option pricing model, last step for finding an option is
A.
price hike
B.
price value
C.
put price
D.
call price
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In binomial approach of option pricing model, last step for finding an option is call price. The call price is the price a bond issuer or preferred stock issuer must pay investors if it wants to buy back, or call, all or part of an issue before the maturity date.