The current price of a non - dividend paying stock is $ 5 0 . Consider an

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Question:

The current price of a non

-

dividend paying stock is $

50 .

Consider an American put option on the stock with a strike price of $

48

that expires in

12

months. In each of the next six month periods, the stock will either increase by

18 %

or decrease by

16 % .

The risk free rate is

5 %,

what is the current value of this option?

Posted Date: May 11, 2024 05:22 AM

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The current price of a non - dividend paying stock is $ 5 0 . Consider an

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