Question: Consider a stock with 42% yearly volatility and a current price of 437.5, moreover, the annual risk-free rate is r=0.0125. Assume you want to build

Consider a stock with 42% yearly volatility and a current price of 437.5, moreover, the annual risk-free rate is r=0.0125.

Assume you want to build a portfolio of options containing one call option with strike K₁=420, and one put option with strike K₂=460, and the maturity of both options is one year.

Compute the put option price P₂_.

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