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A stock with a current price of $32 and ...

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题目

A stock with a current price of $32 and volatility of 15% pays a dividend of 2.0% per annum (with continuous compounding). The riskless rate is 2.0%. We use a twelve-step binomial model to price an American put option with one year to expiration; i.e., each step is one month. What is the risk-neutral probability of a down movement (1-p)?

选项

A.0.4646

B.0.4962

C.0.5108

D.0.5375

答案

C

解析

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