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A stock price is currently $100. Over each of the next years it is expected to go up by 4.88% or down by 2.53%. The risk-free interest rate is 2.5% per annum. What is the value of a two-year American put that has a strike price of $100?

A. $0.39

B. $0.89

C. $0.79

D. $1.19

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92166899

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