Question: Set up a one-period binomial tree for a put option. Use the following information about the underlying stock price and the risk-free interest rate. What

Set up a one-period binomial tree for a put option. Use the following information about the underlying stock price and the risk-free interest rate. What is the current value of the hedge portfolio? Does it grow at a risk-free rate over time?

price=59

strike price (x)= 60

up (u)= 1.15

down (d)= .85

r= .05

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