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

2. Let So = $10, K = $10, r = 8%,

2. Let So = $10, K = $10, r = 8%, T = 0.5, and q = 0. Let u = 1.3, d = 0.8, and n = 1. What are the premium, 4, and B for a European put? Show both the put and the synthetic put in a diagram. Label properly. a. b. 10 4 0 -2 -4 16

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