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Consider a stock whose current price is $50. Suppose that there are two time steps of 1 year, and in each time step the stock
Consider a stock whose current price is $50. Suppose that there are two time steps of 1 year,
and in each time step the stock price either moves up by 20% or moves down by 20%. The
risk-free interest rate is 5%. Value a 2-year European put with a strike price of $52.
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