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GS stock is currently worth $56. Every year, it can increase by 30% or decrease by 10%. The stock pays no dividends, and the annual

GS stock is currently worth $56. Every year, it can increase by 30% or decrease by 10%. The stock pays no dividends, and the annual continuously-compounded risk-free interest rate is 4%. Using a two-period binomial option pricing model, find the price today of one two-year European put option on the stock with a strike price of $120.

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