Principles of Corporate Finance

50.78 = price

10.78 = intrinsic value

40.37

.37

32.10

0

25.52

0

45.28

5.60

36

.19

28.62

0

40.37

2.91

32.10

.10

36

1.51

[(Ou ×Pu)+(Ud × Pd)]×(e−r∆t)

Binomial Pricing