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The stock price of Bravo Corp. is currently $125. The stock price a year from now will be either $210 or $85 with equal probabilities.
The stock price of Bravo Corp. is currently $125. The stock price a year from now will be either $210 or $85 with equal probabilities. The interest rate at which investors invest in riskless assets is 5%. Using the binomial OPM, the value of a put option with an exercise price of $155 and an expiration date 1 year from now should be worth ______ today. $29.44 $49.50 $42.00 $27.55
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