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3. The stock of Predictable Co. is currently worth $100 per share. In one year, this price can either be $120 or $90. Predictable Co.

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3. The stock of Predictable Co. is currently worth $100 per share. In one year, this price can either be $120 or $90. Predictable Co. stock does not pay dividends. The annual continuously compounded risk-free interest rate is 5%. The strike price of a one-year American put option on Predictable Co. stock is $130. Using, the one-period binomial option pricing model, find the price today of one such American put option on Predictable Co. stock. 3. The stock of Predictable Co. is currently worth $100 per share. In one year, this price can either be $120 or $90. Predictable Co. stock does not pay dividends. The annual continuously compounded risk-free interest rate is 5%. The strike price of a one-year American put option on Predictable Co. stock is $130. Using, the one-period binomial option pricing model, find the price today of one such American put option on Predictable Co. stock

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