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What is the value of a put option

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Reference no: EM133121841

Assume that the stock of IMIZONE Co., is currently trading for AUD15. The stock price will either rise to AUD25.0 or to AUD8 in one year. Based on the current estimation, the risk-free rate for one year is 5%. What is the value of a put option with a strike price of AUD17 that expires in 3 months?

Note: Do not round intermediate computations. Round final answer to 2 decimal places.

Reference no: EM133121841

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