Question: Not sure how to do this type of problem, any explanation of the steps will help me understand Question 8. The BingoD stock is traded

 Not sure how to do this type of problem, any explanation

Not sure how to do this type of problem, any explanation of the steps will help me understand

Question 8. The BingoD stock is traded for $61 now and will be either $64 or $54 two months later. The interest rate is zero. A $1 dividend is expected, and its ex-dividend date is in one month. The value of a two-month 60-strike European put option on the stock should be closest to (a) 3.60 dollars. (b) 2.40 dollars. (c 1.80 dollars. (d) 4.20 dollars

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