Question: What is the correct answer? Problem 21-38 You are attempting to value a put option with an exercise price of $109 and one year to

What is the correct answer? Problem 21-38 You are attempting to

What is the correct answer?

Problem 21-38 You are attempting to value a put option with an exercise price of $109 and one year to expiration. The underlying stock pays no dividends, its current price is $109, and you believe it has a 50% chance of increasing to $127 and a 50% chance of decreasing to $91. The risk-free rate of interest is 5% Calculate the value of a put option with exercise price $109. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Value of a put option $ 8.18 X

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