Question
A stock is currently priced at $51 and will move up by a factor of 1.12 or down by a factor of .65 each period
A stock is currently priced at $51 and will move up by a factor of 1.12 or down by a factor of .65 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 $56? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Guardians Of Finance
Authors: James R. Barth, Gerard Caprio, Ross Levine
1st Edition
0262526840, 978-0262526845
