Question: Consider a one period binomial option pricing setting. The current stock price is $47.37. The stock may increase by 1.08 or decrease by 0.75. One

Consider a one period binomial option pricing setting.

The current stock price is $47.37. The stock may increase by 1.08 or decrease by 0.75. One plus the riskfree rate, rf is 1.06.

What is the initial value of a put option with a strike price of $44?

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