A stock price is currently 50 over each of the next two, Ask an Expert

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A stock price is currently $50. Over each of the next two years it is expected to go up by 10% or down by 10%. The risk-free interest rate is 4% per annum with continuous compounding.

What is the price of a 2-year European put option with a strike price of $52?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92434128

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