Question
A stock is priced at $300 today, and will either be worth $375 or $225 one year from today. The risk-free rate is 3%/year. What
A stock is priced at $300 today, and will either be worth $375 or $225 one year from today. The risk-free rate is 3%/year. What is the price of a one-year put option with a strike price of $350?
A. $53.40
B. $2.25
C. $18.46
D. $29.96
E. $9.87
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
