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European put option on stock xyz expiring

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Reference no: EM132564847

Shares in stock XYZ are currently trading at $9 and are expected to be worth either $25 or $5 next year. An at-the-money European put option on stock XYZ expiring next year is currently trading at $3.20. The one-year risk-free interest rate is equal to: (a) 100%. (b) 50%. (c) 25%. (d) 0%.

Reference no: EM132564847

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