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PLEASE SHOW ON EXCEL. PLEASE DON'T USE AI TO ANSWER. I WILL RATE. ( Finding rf Stockprice today Putprice ) In a binomial model a

PLEASE SHOW ON EXCEL. PLEASE DON'T USE AI TO ANSWER. I WILL RATE.

(

Finding rf Stockprice today Putprice

)

In a binomial model a European put option is written on a stock

selling today for $

30 .

The exercise price of the put option is $

40 .

The put option

s payoffs are $

20

and $

5 .

The price of the put is $

9.50 .

What is the riskless interest rate? Assume that the basic period is

1

year.

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