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4. A unit of stock is valued at $60. In one year the stock price will be either $75 or $50. Suppose that the derivative

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4. A unit of stock is valued at $60. In one year the stock price will be either $75 or $50. Suppose that the derivative is a put option whose exercise price is $60. The current one- year interest rate is 5%. Find the put option price at t = 0

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