Question: Consider a binomial tree model for pricing a European put with strike price k = 5, expiring at time t = 3. The other parameters

Consider a binomial tree model for pricing a European put with strike price k = 5, expiring at time t = 3. The other parameters are: S0 = 4, u = 2, d = 1 2 and r = 0.1. Using the replication theorem, find the price of the put at time 0.

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