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Price of a two-month european put option

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Reference no: EM132569513

What's the price of a two-month European put option given the following information: the exercise price is $19, the current share price is $19.50 and the risk-free interest rate is 1% per month. Furthermore, the share price is expected to either increase by 5% or decrease by 4.762% each month. The company does not pay dividends. It is a risk-neutral world.

Reference no: EM132569513

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