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Q2. A stock price is currently $60. You predict that at the end of 6 months stock price will increase or decrease by 20%. The

Q2. A stock price is currently $60. You predict that at the end of 6 months stock price will increase or decrease by 20%. The risk-free interest rate is 10% per annum with continuous compounding. What is the value of a 6-month European put option with a strike price of $60?

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