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What is the price of the option today

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Question - Suppose that shares of C Inc. are trading at $100. Consider an American put option with strike price 110. The option matures two periods from now and it pays no dividends. The price can go up by 15% or down by 10% in each period. What is the price of the option today? The risk-free rate is 7%.

Reference no: EM133147439

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