Question: Q.5: (a) Consider a one-period binomial model in which the underlying is at 65 and can go up 30% or down 22%. The risk-free rate

Q.5: (a) Consider a one-period binomial model in which the underlying

Q.5: (a) Consider a one-period binomial model in which the underlying is at 65 and can go up 30% or down 22%. The risk-free rate is 8%. Determine the price of a put option with exercise prices of 70. (b) How cryptocurrencies can impact any economy? Explain the legal status of cryptocurrencies in Pakistan. (10+10)

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