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the serie 1. Consider a single-period binomial model with r = 1/5, S. = 3, u = 2, d = 1/2, and p= 5/7. Let

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the serie 1. Consider a single-period binomial model with r = 1/5, S. = 3, u = 2, d = 1/2, and p= 5/7. Let X be a European put option with strike price K = $3, expiring at time T = 1. Compute the arbitrage free price of this option. * = si, apie

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