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Consider Jimmy Shoe Plc is a non-dividend paying stock trading at $20. Using a two-step binomial model calculate the value of a European put option
Consider Jimmy Shoe Plc is a non-dividend paying stock trading at $20. Using a two-step binomial model calculate the value of a European put option on the stock with a strike price of $22 that expires in 6 months with u = 1.1 and d = 0.9. Each step is 3 months and the risk-free rate is 6%. Answer: $2.06
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