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11. Stock X price is $100 and could go up by 17% or down by 15% in each six-month period. A one-year put option on

11. Stock X price is $100 and could go up by 17% or down by 15% in each six-month period. A one-year put option on stock X has an exercise price of $98. The interest rate is 2.5% a year. (a) Find a equivalent standard deviation of returns of stock X. (b) What is the value of the put?

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