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9. A stock price is currently $30. Every 6 months the price will either go up by 12% or down by 8%. The risk-free rate

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9. A stock price is currently $30. Every 6 months the price will either go up by 12% or down by 8%. The risk-free rate is 4% per annurn with continuous compounding (a) Compute the price of a one-year European put option with strike price $32 (b) Compute the price of a one-year American put option with strike price $32

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