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Assume that a stock price is currently at S = $60. It is known that in one year stock price will be either $70 or

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Assume that a stock price is currently at S = $60. It is known that in one year stock price will be either $70 or $50. The annual interest rate is ry 5%. Using a one-period risk neutral valuation method, what is the fair price of a European put option with strike price X - 56 and 1 year to maturity

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