DSE 2010 doubt

classic Classic list List threaded Threaded
3 messages Options
Reply | Threaded
Open this post in threaded view
|

DSE 2010 doubt

Halflife
CONTENTS DELETED
The author has deleted this message.
Reply | Threaded
Open this post in threaded view
|

Re: DSE 2010 doubt

AdityaGarg13
For share, present value will be 5(x) + (-1)(1-x) = 3

Which gives x = 2/3 and 1-x = 1/3, probabilities of two states.

Using that third asset price would be 3(x) + 0(1-x) = 3 * 2/3 = 2
Reply | Threaded
Open this post in threaded view
|

Re: DSE 2010 doubt

Halflife
CONTENTS DELETED
The author has deleted this message.