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The current stock price is $ 50. In 3 months, it either increases by 20% or decreases by 20%. The stock pays no dividends and
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 a put 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%? O $ 0, $ 5 O $5, $0 O $ 0, $ 15 $15, $ 5
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