Find the price of put option using simulated stock prices

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Reference no: EM132039122

Please find the price of the put option using the simulated stock prices. The put option matures in 1 year and has exercise price S30. The price of the underlying stock is S30 today. The average annual stock return is 5%. The annualized stock volatility is 15%. The interest rate on the risk-free asset is 5% per year. Please simulate the end of year stock price for 1000 times.

Reference no: EM132039122

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