Question: Consider a two-period binomial model for a stock that currently trades at a price of $54. The stock price can go up 20% or down

Consider a two-period binomial model for a stock that currently trades at a price of $54. The stock price can go up 20% or down 17% each period, and the risk-free rate is 5%. Calculate the price of a put option expiring in two periods with an exercise price of $60.

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