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A stock is currently priced at $39 and will move up by a factor of 1.29 or down by a factor of 0.53 each period
A stock is currently priced at $39 and will move up by a factor of 1.29 or down by a factor of 0.53 each period over each of the next two periods. The risk-free rate of interest is 3 percent. What is the value of a put option with a strike price of $50? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of a put option
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
