Question: 7. (3 points) Suppose the current stock price is $50 and you believe that, one year from now, the stock will sell for either $60

7. (3 points) Suppose the current stock price is $50 and you believe that, one year from now, the stock will sell for either $60 (up-state) or $30 (down-state). The yield on a 1-year risk-free zero coupon bond is currently 4%. You have a European put option with a 1-year expiration date and an exercise price of $40. The call option price with the same exercise price with the same maturity date is $14.10. What would be the put option price? 7. (3 points) Suppose the current stock price is $50 and you believe that, one year from now, the stock will sell for either $60 (up-state) or $30 (down-state). The yield on a 1-year risk-free zero coupon bond is currently 4%. You have a European put option with a 1-year expiration date and an exercise price of $40. The call option price with the same exercise price with the same maturity date is $14.10. What would be the put option price
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