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You are attempting to value a put option with an exercise price of $100 and one...

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Finance

You are attempting to value a put option with an exercise priceof $100 and one year to expiration. The underlying stock pays nodividends, its current price is $100, and you believe it has a 50%chance of increasing to $116 and a 50% chance of decreasing to $84.The risk-free rate of interest is 8%. Calculate the value of a putoption with exercise price $100. (Do not round intermediatecalculations. Round your answer to 2 decimalplaces.)

Value of a Put option?

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You are attempting to value a put option with an exercise priceof $100 and one year to expiration. The underlying stock pays nodividends, its current price is $100, and you believe it has a 50%chance of increasing to $116 and a 50% chance of decreasing to $84.The risk-free rate of interest is 8%. Calculate the value of a putoption with exercise price $100. (Do not round intermediatecalculations. Round your answer to 2 decimalplaces.)Value of a Put option?

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