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Intro The current price of a non-dividend-paying stock is $32.27 and you expect the stock...

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Intro The current price of a non-dividend-paying stock is $32.27 and you expect the stock price to either go up by a factor of 1.397 or down by a factor of 0.716 over the next 0.7 years. A European put option on the stock expires in 0.7 years. Its strike price is $32. The risk-free rate is 8% (annual, continuously compounded). Part 1 | Attempt 1/10 for 10 pts. What is the option payoff if the stock price goes down? 1+ decimals Submit Part 2 Attempt 1/10 for 10 pts. What is the risk-neutral probability of an up movement? 2+ decimals Submit Part 3 Attempt 1/10 for 10 pts. What is the value of the option? 2+ decimals Submit

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