What the value today of the put option is closest to

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problem 1: A put option on a stock has an exercise price of $45 and a time to expiration of one year. The current value of the stock is at $45, and the size of an up and down move in the stock's price is 1.5 and 0.6667, respectively. Given a risk-free rate of 4%, the value today of the put option is closest to:

Option 1: $7.96
Option 2: $9.69
Option 3: $8.28

Reference no: EM132791412

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