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Data: S 0 = 102; X = 116; 1 + r = 1.08. The two possibilities for S T are 150 and 82. Form a

Data: S₀ = 102; X = 116; 1 + r = 1.08. The two possibilities for S_T are 150 and 82.

Form a portfolio of one shares of stock and two puts. What is the (nonrandom) payoff to this portfolio?

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