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The price of a stock, which pays no dividends, is $30 today. In one year, the stock price will either be $36 or $24. The

The price of a stock, which pays no dividends, is $30 today. In one year, the stock price will either be $36 or $24. The strike price of a one year European put option on the stock is $27. The risk-free rate is 4% per year with annual compounding. What is the premium of the put option today?

$0.00

$3.00

$5.19

$1.15

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