Question: Define options and puts. Explain how options are valued using the Black - Scholes and the Two - State Option Pricing Model. Explain the concept

Define options and puts.
Explain how options are valued using the Black-Scholes and the Two-State Option Pricing Model.
Explain the concept of zero-sum game in options trading.
Explain the use of options in capital budgeting and the impact on the use of NPV in capital budgeting decision-making.

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