Question: Binomial Option Pricing Case 1: A stock is currently priced at $39/share and pays no dividends. The periodic risk-free rate of interest is 2%. The

Binomial Option Pricing Case 1: A stock is currently priced at $39/share and pays no dividends. The periodic risk-free rate of interest is 2%. The up factor of 1.25 and a down factor of 0.8. Binomial Option Pricing Case 1: In a one-period binomial tree option pricing model, what is the price of a European put option with a strike price of 36:

A.

2.3001
B.

2.4052
C.

2.4533
D.

6.1111

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