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Suppose you are pricing a European put option using the binomial model. The stock price is $102, the strike price is $100, the maturity T
Suppose you are pricing a European put option using the binomial model. The stock price is $102, the strike price is $100, the maturity T is two years, the stock's volatility is 15%, and the risk-free rate is 3%. The stock's dividend yield is 2% and it pays only one dividend between now and maturity. Calculate the value of the put option described above.
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