Question: Problem 21-38 You are attempting to value a put option with an exercise price of $100 and one year to expiration. The underlying stock pays

Problem 21-38 You are attempting to value a put option with

Problem 21-38 You are attempting to value a put option with an exercise price of $100 and one year to expiration. The underlying stock pays no dividends, its current price is $100, and you believe it has a 50% chance of increasing to $116 and a 50% chance of decreasing to $84. The risk-free rate of interest is 8%. Calculate the value of a put option with exercise price $100. (Do not round Intermediate calculetions. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Value of a put option s 11.11

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