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Question: Consider a binomial world, in which current stock price of 100 can either go up 10 percent or down by 10 percent. The risk-free rate is 4 percent. Assume a two-period world. What is the theoretical value of the European put with an exercise price of 100? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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