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The stock price of Bravo Corp. is currently $175. The stock price a year from now will be either $305 or $130 with equal probabilities.
The stock price of Bravo Corp. is currently $175. The stock price a year from now will be either $305 or $130 with equal probabilities. The interest rate at which investors invest in riskless assets is 6%. Using the binomial OPM, the value of a put option with an exercise price of $215 and an expiration date 1 year from now should be worth today. (Round intermediate calculation to 2 decimal places) O $39.51 O $73.50 O $55.24 $20.06
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