Swordfish Energy

Evaluate the call and put option prices, both European and American, on an underlying stock index asset by using the lattice framework.

QUESTION ONESwordfish Energy is a regional energy supplier, which purchases energy at spotmarket prices to resell to household customers, at a price determined by a 25% mark–up to yield a net profit sales ratio of 5%. Currently, the spot price for energy is £32.00per unit. Swordfish Energy has 100 thousand household customers on its books.Annually, […]

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