Question: 2. Let 5o = $10, K = $10, r = 8%, T=0.5, and q = 0. Let u = 1.3.d = 0.8, and n =

2. Let 5o = $10, K = $10, r = 8%, T=0.5, and q = 0. Let u = 1.3.d = 0.8, and

2. Let 5o = $10, K = $10, r = 8%, T=0.5, and q = 0. Let u = 1.3.d = 0.8, and n = 1. a. What are the premium, 4, and B for a European put? b. Show both the put and the synthetic put in a diagram. Label properly

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