Calculate the price of two year european put option

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Reference no: EM132038756

The current price of Excel Network Systems stock is £60 per share. In each of the next two years the stock price will either increase by 20% or decrease by 10%. The 3% one year risk free rate of interest will remain constant. Calculate the price of a two year European put option on Excel Network Systems stock with a strike price of £60. Use binomial pricing

Reference no: EM132038756

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