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Consider a 3-month European put option on a non-dividend-paying stock, where the stock price is $50, the strike price is $50, the risk-free rate is
Consider a 3-month European put option on a non-dividend-paying stock, where the stock price is $50, the strike price is $50, the risk-free rate is 3% per annum. Stock price will either move up by 10% or down by 5%, every month. Price the put with binomial trees.
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