Question
A stock is currently priced at $40 and will move up by a factor of 1.31 or down by a factor of .89 each period
A stock is currently priced at $40 and will move up by a factor of 1.31 or down by a factor of .89 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.)
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Public Finance Theory And Practice
Authors: M. Marlow
1st Edition
0030969603, 978-0030969607
