What is no-arbitrage value of european vanilla put option

Reference no: EM13279603

The current traded price of an underlier is $10, and it will be either $5 or $15 at the end of the period. Riskless borrowing and lending for the period is 10% p.a. A Europeand Vanilla Put option on the underliner with stike price of $9 is trading in the market. What is the no-arbitrage value of the European vanilla Put option?

Reference no: EM13279603

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