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Suppose a stock is currently trading at $100, and over the next period it will either go up to 110 or down to 90. The
Suppose a stock is currently trading at $100, and over the next period it will either go up to 110 or down to 90. The simple one-period discount rate is 2%. What is closest to the price of the one-period at-the-money put on the stock?
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