We will derive a two$-$state put option value in this problem. We have the following information:

$100$;$x=110$;$1+$

$1\mathrm{.}10.$ The two possibilities for

$r_f$

$=1\mathrm{.}10.$ The two possibilities for

are $120$ and $80.$

Given that the stock currently is selling at $100,$ what is the value of this put option? $q,$

$q,$

$6\mathrm{.}82$

$q,$

$6\mathrm{.}24q,$

$5\mathrm{.}24q,$

$5\mathrm{.}82$