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Financial Engineering Financial Engineering

Financial Engineering - PowerPoint Presentation

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Uploaded On 2017-11-02

Financial Engineering - PPT Presentation

Lecture 3 Option Valuation Methods Genentech call options have an exercise price of 80 and expire in one year Case 1 Stock price falls to 60 Option value 0 Case 2 Stock price rises to 10667 ID: 601876

price volatility implied option volatility price option implied binomial pricing calculate expected 365 return http strike days 3732 value40

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