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Todays price of Caesars (CZR) is $3 per share. CZR does not pay dividends. You are interested in a European put option on CZR with

Todays price of Caesars (CZR) is $3 per share. CZR does not pay dividends. You are interested in a European put option on CZR with a strike of $4 and a maturity of three years. You estimate the volatility of CZR will be 12 percent each year. The c.c. risk-free rate is five percent. Assume there is no arbitrage. What is the Black-Scholes price of the put option? Round your answer to three decimal places.

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