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Binomial Option Pricing Case 1: A stock is currently priced at $39/share and pays no dividends. The periodic risk-free rate of interest is 2%. The

Binomial Option Pricing Case 1:

A stock is currently priced at $39/share and pays no dividends. The periodic risk-free rate of interest is 2%. The up factor of 1.25 and a down factor of 0.8.

Binomial Option Pricing Case 1: In a one-period binomial tree option pricing model, what is the price of a European put option with a strike price of 36:

A.2.4533

B.2.4052

C.2.3001

D.6.1111

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