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Question The current price of a stock is 32. You wish to buy a 32-strike three month European put option on the stock. You are

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Question The current price of a stock is 32. You wish to buy a 32-strike three month European put option on the stock. You are given (i) 8=0.01. (ii) o=0.25 (iii) The continuously compounded risk-free interest rate is 0.035 Calculate the price of the option. Possible Answers A 1.3 B 1.5 1.7 D 1.9 E 2.1

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