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A stock price is currently $180. It is known that it will be either $207 or $153 at the end of 3 months. The risk-free
A stock price is currently $180. It is known that it will be either $207 or $153 at the end of 3 months.
The risk-free interest rate is 2% per annum with continuous compounding.
What is the value of the 3- month European stock put option (with a strike price of $175)?
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