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[ 2 - S 0 1 : 3 0 ] A stock price can go up by 2 0 % or down by 1 5
S: A stock price can go up by or down by over the next year. The current stock price is greater than You own a oneyear put on the stock. The put has an exercise price of The effective annual riskfree interest rate is
The stock pays no dividends.
If the put is exercised today, the amount received will be The price of the put today unexercised is also
Calculate the current stock price.
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