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CONSIDER A SHARE THAT TRADES AT A SPOT PRICE (S) OF R87. A PUT OPTION ON THIS SHARE HAS AN EXERCISE PRICE (X) OF R90.

CONSIDER A SHARE THAT TRADES AT A SPOT PRICE (S) OF R87. A PUT OPTION ON THIS SHARE HAS AN EXERCISE PRICE (X) OF R90. THE RISK-FREE INTEREST RATE IS 6% PER PERIOD. BASED ON A TWO-PERIOD BINOMIAL MODEL...

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