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The current price of the Zero stock is 100. In one period, the price will either rise by 20 or fall by 15. The one-period
The current price of the Zero stock is 100. In one period, the price will either rise by 20 or fall by 15. The one-period risk-free rate of return is 5%. Use risk-neutral probabilities and a one-period binomial model to value a put option on the Zero stock with an exercise price of 110 and that expires in one period.
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