as for 3 times up – 1.05^3 × 200 = 231.5, so call option will exercise
but when checking for 2 ups and 1down i.e 1.05^2 × 0.95× 190 = gives 199
so why while checking 2 times up and 1 time down we multiplied with 190 but not 200?
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Share the answer, is it option B?
No in all cases you multiply by 190 And in only one case the answer is greater than 200 that is (1.05)³×190=219
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