Compute the expected value of Log S_n+1/Sn, where Sn denoted the value of S&P500 at time n . Using u=1.0063 and d=.993738.
The answer should be in terms of p and q. Using Historical prices of the here. Use this estimate to compute p and q.
Compute the expected value of Log S_n+1/Sn, where Sn denoted the value of S&P500 at time n . Using u=1.0063 and d=.993738.
The answer should be in terms of p and q. Using Historical prices of the here. Use this estimate to compute p and q.