Question: (c) Without using the binomial tree, what is the premium of the bear put spread with the same strike prices? Explain. (2 marks) Question 3

(c) Without using the binomial tree, what is the premium of the bear put spread with the same strike prices? Explain. (2 marks) Question 3 (7 marks) A European derivative instrument on IBM has the following payoff structure at the maturity date in 3 years; a) ST if ST

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