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What is the value of a 1-year european

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Currently, a stock price is $51. Over each of the next 2 6-month periods it is expected to go up by 12% or down by 10%. The risk-free rate is 6% per annum with continuous compounding. What is the value of a 1-year European put option with a strike price of $50?

Reference no: EM13304337

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