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4. A stock price is currently $100. It is known that at the end of four months it will be cither 120 or 80 .

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4. A stock price is currently $100. It is known that at the end of four months it will be cither 120 or 80 . The risk-free interest rate is 5% per annum with continuous compounding. What is the value of a 10-month European put option with a strike price of-100? Use no-arbitrage arguments

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