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The current price of a non-dividend-paying stock is $100 and you expect the stock price to be either $130 or $50 after 1 years. A

The current price of a non-dividend-paying stock is $100 and you expect the stock price to be either $130 or $50 after 1 years. A European put option on the stock has a strike price of $89 and expires in 1 years. The risk-free rate is 5% (EAR)

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