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Harbin Manufacturing has 10 million shares outstanding with a current share price of $24.95 per share. In one year, the share price is equally likely

Harbin Manufacturing has 10 million shares outstanding with a current share price of $24.95 per share. In one year, the share price is equally likely to be $29 or $19. The risk-free interest rate is 6%.

Using the risk-neutral probabilities, what is the value of a one-year put option on Harbin stock with a strike price of $25?

What is the expected return of the put option?

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