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What is the value of a put option

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Question - IBM stock currently sells for 49 dollars per share. Over 12 months the price will either go by 11.5 percent or down by -7.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. What is the value of a put option with strike price 51 and maturity 12 months?

Reference no: EM132921654

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