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We have implied trinomial tree with information: S(0)=50, in period 1 share takes values 60, 40 and 30. Can we determine the price of call option if we are given the price of a put option? Strikes are 50 for call and 30 for put option. Interest rate is 10%.
Now this would be easy to solve if there would be 2 equal strikes with put-call parity equation. But there are two different strikes. Any ideas how to solve this? Thanks.
Now this would be easy to solve if there would be 2 equal strikes with put-call parity equation. But there are two different strikes. Any ideas how to solve this? Thanks.