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Consider a six-month European put option on a stock with a strike price of $31. The current stock price is $30 and over the next six months it is expected to rise by 10% or fall by 10% in a one-period binomial tree. The risk-free interest rate is 2% per year. The stock pays no dividend. What is the price of the put option
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Consider a six-month European put option on a stock with a strike price of $31. The current stock pr...
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