Problem 3 Corporate Finance, Financial & Real Options There is an America put option on a stock that expires in two months. The stock price is $63, and the standard deviation on the stock returns is 65 percent. The option has a strike price of $70, and the risk free rate is a 5 percent annual percentage rate. What is the price of the put option today using one/month steps? (Hint: How will you find the value of the option if it can be exercised early? When would you exercise the option early?) Problem 3 Corporate Finance, Financial & Real Options There is an America put option on a stock that expires in two months. The stock price is $63, and the standard deviation on the stock returns is 65 percent. The option has a strike price of $70, and the risk free rate is a 5 percent annual percentage rate. What is the price of the put option today using one/month steps? (Hint: How will you find the value of the option if it can be exercised early? When would you exercise the option early?)