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please show me the steps with calculation I Consider a European put option on a non-dividend-paying stock with maturity 6 months and strike price $71.
please show me the steps with calculation
I Consider a European put option on a non-dividend-paying stock with maturity 6 months and strike price $71. The current stock price is $70, the volatility of the stock is 35% per year and the risk-free interest rate is 12%, a) Calculate the price of the option by using a 2-step binomial tree. Answer: $4.30. DE Step by Step Solution
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