Question: - 1/5, So = 3, u = 2, d = 1/2, and $3, expiring at time 1. Consider a single-period binomial model with r =

- 1/5, So = 3, u = 2, d = 1/2,

- 1/5, So = 3, u = 2, d = 1/2, and $3, expiring at time 1. Consider a single-period binomial model with r = p = 5/7. Let X be a European put option with strike price K T = 1. Compute the arbitrage free price of this option

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