Problemyou are attempting to value a call option with an, Ask an Expert

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You are attempting to value a call option with an exercise price of $108 and 1 year to expiration. The underlying stock pays no dividends, its current price is $108, and you believe it has a 50% chance of increasing to $130 and a 50% chance of decreasing to $86. The risk-free rate of interest is 10%.

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Question: Calculate the value of a put option with exercise price $108.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174825

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