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a stock price is currently $232. It is known that at the end of seven months it will be either $260 or $210. The risk-free
a stock price is currently $232. It is known that at the end of seven months it will be either $260 or $210. The risk-free interest rate is 3.5% per annum with continuous compounding. What is the value of a seven-month European put option with a strike price of $240? Use no-arbitrage arguments.
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