4 ms·
this also requires one exercises the cocounut option at the end of every year. If you don't and they drop to zero in year 4...
by jiggunjer 8y ago
this also requires one exercises the cocounut option at the end of every year. If you don't and they drop to zero in year 4...
- rgossiaux 8y agoFor the purposes of this thought experiment we're assuming that there's no price movement after year 1. In the real world this probability of failure in the future should be priced in to the year 2 price and doesn't affect the expected value anyway.