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The following statement is for Question 1, 2 and 3: We will derive a two-state put option value in this problem. We have the

The following statement is for Question 1, 2 and 3: We will derive a two-state put option value in this problem. We have the following information: So 100; X=110; 1+rf=1.10. The two possibilities for ST are 120 and 80. Given that the stock currently is selling at 100, what is the value of this put option? 5.82 6.24 6.82 5.24

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