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(Only B) 2. Let S0=$10,K=$10,r=8%,T=0.5, and q=0. Let u=1.3,d=0.8, and n=1. a. What are the premium, , and B for a European put? b. Show
(Only B)
2. Let S0=$10,K=$10,r=8%,T=0.5, and q=0. Let u=1.3,d=0.8, and n=1. a. What are the premium, , and B for a European put? b. Show both the put and the synthetic put in a diagram. Label properly. 2. Let S0=$10,K=$10,r=8%,T=0.5, and q=0. Let u=1.3,d=0.8, and n=1. a. What are the premium, , and B for a European put? b. Show both the put and the synthetic put in a diagram. Label properlyStep by Step Solution
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