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Suppose that a stock price is currently 53 dollars, and it is known that five months from now, the price will be either 19 percent

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Suppose that a stock price is currently 53 dollars, and it is known that five months from now, the price will be either 19 percent higher or 19 percent lower. Find the value of a European put option on the stock that expires five months from now, and has a strike price of 55 dollars. Assume that no arbitrage opportunities exist, and a risk-free interest rate of 7 percent. Answer = dollars

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