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QUESTION 1 Assume that a stock price is currently at S = $60. It is known that in one year stock price will be eit

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QUESTION 1 Assume that a stock price is currently at S = $60. It is known that in one year stock price will be eit her $75 or $45. The annual interest rate is rf=5%. Using a one-period binomial tree model, what is the fair price of a European put option with strike price X = 65 and 1 year to maturity

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