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A stock currently trades at 23. The market agrees that next month the stock price will either go up by 8%, or go down by
A stock currently trades at 23. The market agrees that next month the stock price will either go up by 8%, or go down by 6%. The monthly risk-free rate is 2%. Using the single period binomial option pricing model, what is the price of a 1-month European put option on this stock which has an exercise price K=23? Please round your answer to the nearest 0.01
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