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Merv Corp stock is currently trading at $140. The stock price a year from now will be either $240 or $100 with equal probabilities. The
Merv Corp stock is currently trading at $140. The stock price a year from now will be either $240 or $100 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 $175 and an expiration date 1 year from now should be worth. today. (Round intermediate calculation to 2 decimal places) $34.46 $57.50 $46.66 $25.06
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