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A European put has a current price of 7.5 with an of 0.6. The current stock price is 100. Estimate the value of the put

A European put has a current price of 7.5 with an of 0.6. The current stock price is 100. Estimate the value of the put if the stock price increases to 105 using the following two approximation methods.

A. The approximation.

B. The elasticity approximation.

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