Question: Consider a one period binomial option pricing setting. The current stock price is $47.33. The stock may increase by 1.17 or decrease by 0.62. One

Consider a one period binomial option pricing setting.

The current stock price is $47.33. The stock may increase by 1.17 or decrease by 0.62. One plus the riskfree rate, rf is 1.02.

What is the initial value of a put option with a strike price of $45?

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