Question: Consider a two-period (forward) binomial model where each period is 6 months. Assume that the current stock price is 40, = 0.30, r = 0.08,

Consider a two-period (forward) binomial model where each period is 6 months. Assume that the current stock price is 40,

= 0.30, r = 0.08, and that the dividend yield is 0.00.

What is the price of a European put option with a strike price of 27?

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