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What is the price of a european put option on a non-dividend

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Reference no: EM133002879

Problem 1: What is the price of a European put option on a non-dividend-paying stock when the stock price is $108, the strike price is $110, the risk-free interest rate is 2.5% per annum, the volatility is 28% per annum, and the time to maturity is four months?

a. $8.13
b. $4.58
c. $5.22
d. $7.55

Reference no: EM133002879

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