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$88 A European put option on a nondividend-paying stock has a strike price and expires in seven months. The annual continuously compounded risk-free rate is

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$88 A European put option on a nondividend-paying stock has a strike price and expires in seven months. The annual continuously compounded risk-free rate is 8%. The current price of the stock is $130. The price volatility is 30%. Use a 7-period binomial model to find the price of the put. Hint: Compare d'S and ud6S

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