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Use risk neutral valuation to value a PUT option on 9,000 with a strike price of 10,000. S_0(/) = 0.80/, i_= 10% and i_ =

Use risk neutral valuation to value a PUT option on 9,000 with a strike price of 10,000.

S_0(/) = 0.80/, i_= 10% and i_ = 3%

In the next year, there are two possibilities:

S_1(/) = 1.00/ or S_1(/) = 0.65/

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