Question: You are considering buying a three-month put option on Wing and a Prayer Construction stock. The companys stock currently trades for $10 per share and

You are considering buying a three-month put option on Wing and a Prayer Construction stock. The company’s stock currently trades for $10 per share and its price will either rise to $15 or fall to $7 in three months. The risk-free rate for three months is 2 percent. What is the appropriate price for a put option with a strike price of $9?

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