The following statement is for Question 1, 2 and 3: We will derive a two-state put...
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The following statement is for Question 1, 2 and 3: We will derive a two-state put option value in this problem. We have the following information: So 100; X=110; 1+rf=1.10. The two possibilities for ST are 120 and 80. Given that the stock currently is selling at 100, what is the value of this put option? 5.82 6.24 6.82 5.24 The following statement is for Question 1, 2 and 3: We will derive a two-state put option value in this problem. We have the following information: So 100; X=110; 1+rf=1.10. The two possibilities for ST are 120 and 80. Given that the stock currently is selling at 100, what is the value of this put option? 5.82 6.24 6.82 5.24
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