Assume today is 1 July 2020

Pakistan Refinery Limited

Current share price Rs. 240

Option purhases : Put option (Right to Sell) - Sell now & Buy later

Tenure : 3 years (30 June 2023)

Risk Free rate = 9%

Expectation:

At the end of year 1 = price increased by 11% or decrease by 14%

At the end of year 2 = price increasedby 15% or decrese by 21%.

At the end of year 3 = Price incresed by 13% or decrease by 8%

Exercise price Rs. 243.

Required:

Calculate the value of put option?