But Mike in my solution I had written that assuming that; S0uS1d < S0 and the same will be for the down-up move. I hate unclear questions, do you get penalized for stating an assumption?
I remember April 2008_q3, the question wanted the value of a derivative after one year when the information before just spoke about periods, it was unclear whether a year was one period or two periods. I simply assumed it was one period and the examiner's report used two periods.
Thanks.
Last edited by a moderator: Jan 20, 2012