What is the premium for the european put option

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Spot price =50, strike price =50, effective annual risk free rate =1%, continuous dividend yield =0, time to maturity =1 year, u=1.2, d=0.8,

What is the premium for the European put option?

(Leave 2 d.p. for the answer)

What is the present value of the arbitrage profit?

(Leave 2 d.p. for the answer)

Reference no: EM132288934

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