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Merv Corp stock is currently trading at $105. The stock price a year from now will be either $175 or $70 with equal probabilities. The
Merv Corp stock is currently trading at $105. The stock price a year from now will be either $175 or $70 with equal probabilities. The interest rate at which investors invest in riskless assets is 6%. Using the binomial OPM, the value of a put option with an exercise price of $150 and an expiration date 1 year from now should be worth __________ today. (Round intermediate calculation to 2 decimal places)
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$44.24
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$43.00
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$45.67
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$45.06
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