Question: In a one-period binomial model with Su = 49.5, Sd = 40.5, p = 0.8, r = 0.06, S = 45, T = 1, and

In a one-period binomial model with Su = 49.5, Sd = 40.5, p = 0.8, r = 0.06, S = 45, T = 1, and X = 50, what is a European put worth?

Select one:

a. 2.17

b. 0.50

c. 9.50

d. 5.00

e. none of the above

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