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Use the following data to estimate the value of a European put option with X = $120. The current stock price now is SO =

Use the following data to estimate the value of a European put option with X = $120. The current stock price now is SO = $100. The two possibilities for ST are $150 and $80. If the risk-free rate is 10%, estimate the value of the put option now.

a. P0 = $0 b. P0 = $40 c. P0 = $20.78 d. P0 = $22.86

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