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Consider a one-step binomial tree on stock with a current price of $100 that can go either up to $115 or down to $85 in
Consider a one-step binomial tree on stock with a current price of $100 that can go either up to $115 or down to $85 in 1 year. The stock does not pay dividend and interest rates are zero. Use the tree to compute the value of a 1-year $100-strike European put option on the stock. Keep answer in four decimals space.
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