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show work please You own a lot In Key West, Florida, that is currently unused. Similar lots have recently sold for $1,240,000 million. Over the
show work please
You own a lot In Key West, Florida, that is currently unused. Similar lots have recently sold for $1,240,000 million. Over the past five years, the price of land in the area has Increased 6 percent per year, with an annual standard deviation of 35 percent You would like an option to sell the land in the next 12 months for $1,390,000. The risk-free rate of interest is 4 percent per year, compounded continuously. What is the price of the put option necessary to guarantee your sales price? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g.. 3216.) Price of put option Step by Step Solution
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