Question: We will derive a two-state put option value in this problem. Data: Se = 85; X = 70; 1 +r = 1.1. The two possibilities

We will derive a two-state put option value in this problem.

We will derive a two-state put option value in this problem. Data: Se = 85; X = 70; 1 +r = 1.1. The two possibilities for St are 95 and 55. Given the stock currently is selling at 82, compute the value of the put option (10 points)

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