Question: Please do not use Excel and clearly label the steps :) thanks in advance A stock price is currently 500 SEK. It is known that

Please do not use Excel and clearly label the steps :) thanks in advance

  1. A stock price is currently 500 SEK. It is known that at the end of six months it will be either 450 SEK or 550 SEK. The risk-free interest rate is 10% per annum with continuous compounding. What is the value of a six-month European put option on this stock that has a strike price of 500 SEK?

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