The current stock price is $ 50. In 3 months, it either increases by 20% or decreases by 20%. The stock pays no dividends and continuous compounded interest rate is 8%. For aput option on this stock with the strike price of $ 55 maturing in 3 months, what are its payoffs in 3 months when the stock prices goes up by 20% or goes down by 20%?<\/p>
$ 0, $ 5<\/p>
$ 5, $ 0<\/p>
$ 0, $ 15<\/p>
$15, $ 5<\/p>", "transcribed_text": "", "related_book": { "title": "Fundamental Managerial Accounting Concepts", "isbn": "71220720, 78110890, 9780071220729, 978-0078110894", "edition": "6th Edition", "authors": "Edmonds, Tsay, olds", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/67.jpg", "uri": "\/textbooks\/fundamentals-managerial-accounting-concepts-6th-edition-67", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8863227412", "uri": "\/textbooks\/gmat-prep-book-2024-and-2025-gmat-exam-review-and-study-guide-with-8-mock-exams-and-640-practice-questions-for-graduate-school-test-preparation-pass-your-gmat-exam-in-just-8-days-1st-edition-979-8863227412-332653", "name": "GMAT Prep Book 2024 And 2025 GMAT Exam Review And Study Guide With 8 Mock Exams And 640 Practice Questions For Graduate School Test Preparation Pass Your GMAT Exam In Just 8 Days", "edition": "1st Edition" }, "question_posted": "2024-06-06 08:23:37", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/1-what-are-the-major-advantages-that-schragger-enjoyed-as", "description": "1. 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