Question: Return to Problem 37. What will be the payoff to the put, Pu, if the stock goes up? What will be the payoff, Pd, if

Return to Problem 37. What will be the payoff to the put, Pu, if the stock goes up? What will be the payoff, Pd, if the stock price falls? Value the put option using the risk neutral shortcut described in the box on page 533. Confirm that your answer matches the value you get using the two-state approach?

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