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The current price of a stock is Rs.60. The stock is expected to go up by 15% or down by 10% in the next 3

The current price of a stock is Rs.60. The stock is expected to go up by 15% or down by 10% in the next 3 months. Applying the replicating portfolio approach, Find the value of a Rs.58 put option on the stock if the risk free rate for 3 months is 12% quarterly compounded. Explain in detail

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Foundations of Finance The Logic and Practice of Financial Management

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