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Price an ATM put option in a one-period binomial tree.The underlyingasset,Palladium,istrading for $1,813/unitcurrently and you project that over the next period it will either go
Price an ATM put option in a one-period binomial tree.The underlyingasset,Palladium,istrading for $1,813/unitcurrently and you project that over the next period it will either go up by5%or down by 9%. The risk free rate is 3%.
Provide your answer rounded to two decimals.
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